Liquidator nomination and locus standi: members' nominee may act until creditors take contrary steps.

Where members' meeting nominates a liquidator and no creditors' meeting has been held, the nominated person may be treated as the liquidator for purposes of locus standi. The provisions were construed together, and the statutory references to appointment and nomination were read as interchangeable in this context. The absence of any specific mechanism addressing a case where members and creditors nominate the same person supported that reading, and the fact that creditors had not taken steps to displace the members' nomination left the nomination effective until the creditors acted to the contrary.

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Issues: Whether, where the members' meeting had nominated a liquidator but no creditors' meeting had been held, the nominated person could be treated as the liquidator so as to confer locus standi on the company.

Analysis: The relevant provisions were read together to determine the effect of the word used in the section and the consequence of the absence of a creditors' meeting. The reasoning accepted that the statutory language used the concepts of appointment and nomination interchangeably in this context. It was also noted that there was no specific provision dealing with the situation where the members and creditors nominated the same person, and that nothing had yet been done at the instance of the creditors to displace the members' nomination.

Conclusion: The nominated or appointed person was to be treated as the liquidator until the creditors took steps to the contrary, and the preliminary objection to locus standi failed.

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