Provisional Liquidation

A Provisional Liquidator is appointed to a company by the Court in the period between:

• when an application for the winding up of the company is filed; and
• when the application is heard by the Court.

The appointment is 'provisional' because it may be reversed if the company is not wound up at that hearing, or if another liquidator is appointed to the company at that hearing.

A Court must be convinced that the assets of the company are in danger of being dissipated for the appointment to occur. The most common reasons for the appointment of a Provisional Liquidator include the following:

• there is a dispute between the shareholders
• the company is insolvent and needs an external administrator appointed immediately
• the appointment is a matter of urgency

The main function of the Provisional Liquidator is the preservation and control of the affairs and assets of the company pending the hearing of the winding up application.

For more information please contact our office -

Sydney:         (02) 8346 6000
Newcastle:    (02) 4962 2294
Email:              bri@lawlerpartners.com.au