The primary obligation of a liquidator is to look after the interests of all of the creditors.

Upon his or her appointment the liquidator is tasked with securing the assets, which includes taking control of the premises and the bank accounts as well as securing physical and electronic records. Once the assets are secure the liquidator must report to the creditors as to what the assets are, whether they are secured, and which assets he has been unsuccessful in tracing or recovering (for example, he or she may be unable to recover some or all of the debtors). The liquidator will proceed to sell the assets after the second meeting of creditors. 

A liquidator is also required to investigate the affairs of the company not only to assist with the tracing of assets and to aid recoveries but also to report to the Master of the High Court and the creditors on the reasons for failure, whether there have been any contraventions of the Companies Act and whether further investigation or action is required. Even in liquidations with limited assets, a liquidator is still required, in terms of the Companies Act, to carry out these investigations.

A liquidator may also decide to trade in liquidation i.e. carry on some or all parts of the business if he or she believes that doing so will generate income that would be otherwise forfeited or that by continuing to trade there is a better prospect of selling the assets as a going concern. For example, a liquidator may decide to assemble car parts into completed vehicles as selling the vehicles will generate more income than selling the car parts even with the associated costs of assembly. Or, a liquidator may continue to trade a restaurant and sell the operations to a third party with an established customer base, employees, and assets rather than selling the tables and chairs which would realise very little.

The liquidator should operate within the strictest ethical guidelines and should act with integrity and objectivity. The liquidator should act professionally and with competence and due care. A liquidator should consider whether he or she is conflicted in taking any appointment. If say, the potential liquidator has undertaken professional work for the company prior to it being liquidated a liquidator should consider whether he or she can accept the appointment. A potential liquidator should not accept an appointment if or she has a personal relationship with the company in question. A liquidator is prohibited from soliciting appointments by agreeing to benefit a creditor if the creditor agrees to vote for the appointment. A liquidator is also prohibited from purchasing assets from the company while in liquidation.