Once a liquidator has been appointed, you will no longer manage the company’s day-to-day affairs, but your duties and responsibilities as a director do not end.
You may have to assist the liquidator with the process of identifying and selling company assets. You also have to comply with a directorial investigation, where the liquidator will look closely at your role in the failure of the company. You must cooperate with the liquidator and provide the information they ask for. Failure to do so can bring serious repercussions.
If the investigation finds that you have misapplied funds or the company has traded wrongfully or fraudulently, you could be made personally liable to contribute to the company’s assets. You may also be banned from acting as a director for up to 15 years, and in cases of fraudulent trading, you could even receive a custodial sentence.