How is the way the Liquidation Committee handle the Company’s Property

Question

Based on the above case, the court after nominating the designated people to form the liquidation committee, they will face the following questions:

• 1. The government requires the company which produce low-quality drugs and cause an accident, to return those goods to the factory and refunds;
• 2. the company has some outstanding receivables form normal sales to be resumed, out of which, two of them has disagreement and refuse payment, so pass it has to be solved by way of court;
• 3. the company's assets are required to stock-taking, maintenance, evaluation price  How is the liquidation committee to deal with such matters?

Answer:

1. When the company enters into the liquidation process, according to provisions of Section 187: "during the liquidation period, the company continues to exist, but cannot carry out the liquidation unrelated business activities”, all the original productions and operations are terminated. But for Section 185: "The liquidation committee will exercise the powers: ...... (3) to handle unfinished business; ...... ", it provides that recycling newspaper, waste products and to settle accounts are "related to the liquidation of the unfinished business of the company", the liquidation committee should handle it.
2. In accordance with provision of Section 185, the liquidation has the responsibility to "(5) to settle claims ...... ", "(7) on behalf of the company, involves in civil Litigation activities", the liquidation committee should recover arrears. For the means through litigation, the liquidation committee should represent the company to file a law suit.  If the action requires the company response, the liquidation committee should represent the company.
3. According to the provision of Section 185, the liquidation committee has the responsibility to: "(a) handle the company's assets for preparing a balance sheet and property list", the liquidation committee should undertake stock-taking, maintenance, and entrust a qualified appraisal institution to conduct evaluation.
4. After completion of the above procedure, the liquidation committee shall prepare a balance sheet and an inventory control sheet.