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Section 166: Creditors' voluntary winding up.

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part IV: Winding Up of Companies Registered under the Companies Acts — Chapter VII: Liquidators

This section applies where, in the case of a creditors' voluntary winding up, a liquidator has been nominated by the company.

The exercise by the liquidator of the power specified in paragraph 6 of Schedule 4 to this Act (power to sell any of the company's property) shall not be challengeable on the ground of any prior inhibition.

The powers conferred on the liquidator by section 165 shall not be exercised, except with the sanction of the court, before—

the company's creditors under section 100 nominate a person to be liquidator, or
the procedure by which the company's creditors were to have made such a nomination concludes without a nomination having been made.

Subsection (2) does not apply in relation to the power of the liquidator—

to take into his custody or under his control all the property to which the company is or appears to be entitled;
to dispose of perishable goods and other goods the value of which is likely to diminish if they are not immediately disposed of; and
to do all such other things as may be necessary for the protection of the company's assets.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the directors fail to comply with—

section 99(1), (2) or (2A), or
section 100(1B),

the liquidator shall, within 7 days of the relevant day, apply to the court for directions as to the manner in which that default is to be remedied.

"The relevant day" means the day on which the liquidator was nominated by the company or the day on which he first became aware of the default, whichever is the later.

If the liquidator without reasonable excuse fails to comply with this section, he is liable to a fine.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.