A Provisional Liquidation is a special form of Court ordered Liquidation which is typically used in instances where there is either some concern for the protection of a Company’s assets or due to some aspect of urgency.
This type of appointment is usually made on the application of a creditor, Director or shareholder.
The provisional Liquidator takes possession and control of the assets and affairs of the Company and assets that were considered to be in danger are therefore secured.
During the Provisional Liquidation, an investigation of the Company’s affairs is undertaken and the results are then reported to the Court.
Depending on the result of the investigation the Court will then either appoint an Official Liquidator or return control of the Company back to the Directors.
For more detailed information on Provisional Liquidations please contact the team at Chifley Advisory for free confidential advice.