Question 5: Liquidation It is now a year since the administrator was appointed for CC. In the months after the administrator was appointed, things seemed to improve for the company, its creditors were paid, and it was profitable. However, the company recently missed payments to some creditors. EE is a company owed money by CC. The director of EE, Ernie Evans comes to you for advice regarding liquidation.

a. You tell Ernie there are four different routes for placing a company in liquidation. Citing the relevant statutory provisions, identify these four routes. (Word count guideline: 50 words)

b. Ernie feels that, even if a liquidator is appointed, he wants to be able to monitor the liquidation and to check on the liquidator's progress. You tell him that a liquidation committee might assist him. Citing the relevant statutory provisions, explain what a liquidation committee is and identify four specific powers of such committees. (Word count guideline: 100 words)

c. Ernie comes to see you. He tells you that a liquidator has just been appointed to CC by the court. He is worried as he knows nothing about the state of CC's finances, and he has not heard anything. You tell him that the liquidator has 25 days to fulfil certain tasks and that he can expect to hear from the liquidator soon. Citing any relevant statutory provisions, explain what Ernie can expect the liquidator to do within 25 days. (Word count guideline: 75 words)

d. CC was put into liquidation, and a liquidator appointed on 30 August 2021. Initial indicators are that creditors will receive around 20c on every dollar owing to them. Ernie has heard that liquidators can try to 'claw back' payments that have been made to creditors. He is concerned about a payment made to EE by CC on 30 May 2021. This payment was for goods supplied by EE. When the goods were supplied, the directors of EE had heard that CC was delaying the payment of invoices, so EE refused to supply the goods unless CC paid for them on delivery. CC therefore paid the invoice in full, on delivery. Apply the relevant statutory provisions to determine whether the liquidator can claim this payment back. NOTE: CC and EE are not 'related parties'. (Word count guideline: 200 words)