Provisional Liquidation

PURPOSE

This special form of Court appointed Liquidator is usually used in instances where there is some aspect of urgency or concern for the protection of company assets. There may be no necessity for the company to be wound up and it is possible, albeit uncommon, for the company to be returned to the directors’ care. The appointment is usually made on the application of a creditor, shareholder or director.

BENEFITS
  • The Provisional Liquidator takes possession and control of the assets and affairs of the company. Assets that are in danger are therefore secured.
  • An investigation of the company’s affairs is conducted and the results of which are reported to the Court.
  • The Court may then appoint an Official Liquidator or return the control of the company to the directors.
Michael Jones and Bruce Gleeson are Official Liquidators and are therefore able to act as Provisional Liquidators.