Provisional Liquidation (PL)
We know that not all liquidations go smoothly. And if the court considers your company’s assets or financial resources are at risk during the time between filing a court application and the court hearing then it may appoint a Provisional Liquidator.
What is it?
The Provisional Liquidator acts as an independent third party and can administer and exercise control of your company to protect the creditors’ best interests.
The process
The company isn’t liquidated under this court-appointed liquidator, but rather is placed in care until any issues are resolved. Some of these issues may include concerns by shareholders that the directors are acting recklessly, concerns by creditors who feel the debtor company is hiding assets or putting them at risk of loss while waiting for the wind-up application to be heard, or a dispute between the company’s directors.
It’s called “provisional” because it’s not a permanent solution and may be reversed if the company is not wound up at the court hearing, or if another liquidator is appointed at the hearing.
What you need to do
If you’re a shareholder or a creditor with concerns, contact us immediately. We will help preserve and control the affairs and assets of the company pending the hearing of the winding up application so the earlier you contact us the better. If you’re a director of the company, contact us as soon as possible so we can talk you through your options.
Didn’t find what you were looking for?
Speak to our professional team on 1300 788 788 for IMMEDIATE solutions for your business.
Enquire online now.