The purpose of a Provisional Liquidation (“PL”) is to preserve the assets of the company until the Court hears the winding up application and decides whether or not to appoint an Official Liquidator to wind up the company.
The appointment of a Provisional Liquidator may be requested if it is felt that the assets of the company are at risk and that an independent person should immediately be appointed to safeguard those assets.
The appointment of a Provisional Liquidator often takes place when there is a dispute between directors and / or shareholders and there is concern from one (1) party that the assets may be dissipated.
A PL appointment can occur quickly with the Court Order for the appointment generally given within one (1) day of the application being filed in the Court.
The duly appointed Provisional Liquidator must be registered as an Official Liquidator of the Court that makes the appointment.
Chris, Kim, David, Jimmy and Liam are Official Liquidators of the Federal Court and Supreme Court of Western Australia.
For further information regarding PL’s please contact our office.
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