Section 88 - Liability in case of company in liquidation.

Liquidator notification requirement ensures tax provisioning by authorities when a company undergoes winding up to secure liabilities.

The liquidator must inform the Commissioner within thirty days of appointment; the Commissioner shall, after inquiry, notify within three months the amount deemed sufficient to cover tax, interest or penalty payable by the company. If tax, interest or penalty cannot be recovered from a wound-up private company, every director during the relevant period is jointly and severally liable for those sums unless he proves that non-recovery was not due to his gross neglect, misfeasance or breach of duty.