Talk to us today in confidence0800 970053907833 240747

What is a provisional Liquidator

7 August 2017

In Scotland, a provisional liquidator, who needs to be a licensed insolvency practitioner can be appointed by either the creditors, directors or the company (i.e. the shareholders).

The provisional liquidators principle duty is to safeguard the company's assets. A Provisional Liquidator may be appointed after the petition is presented to court. So it is possible for one to be in place before the company directors are aware of his appointment. The purpose of the appointment of a Provisional Liquidator is to protect and preserve the company's assets if perishable or likely to be removed.

If he/she has been appointed by a creditor e.g. as part of a debt collection exercise, the provisional liquidator will establish whether the company is solvent and if there are sufficient funds to make payment of the petitioning creditors debt, together with costs. If settlement of the petitioning creditors claim is made, the appointment of provisional liquidator can be withdrawn.

The appointment of a provisional liquidator can also be the first step to a full liquidation and is used where a company may continue to trade under the provisional liquidators supervision in order to potentially be sold.

A provisional liquidator can be appointed almost immediately if it is a petition presented by the directors and such appointment can continue for many months if deemed necessary.

Once a creditors meeting has been held the Provisional Liquidator will make way for the Full Liquidator to take over. Although in practice it is not uncommon for the them to be one and the same person.

Category: Liquidation

A Worried Director

The Ultimate Guide For Worried Directors

Worried about poor cashflow? Feel you have got into a bit of a mess? Covid-19?, How to pay wages on pay day? For reassuring advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539

"KSA Group which owns this site, will help you fix problems in your business. We won't charge for any initial advice or face to face meetings. We speak in English. We will save you money and your precious time.  You can come to any of our offices

"We also follow up any meeting with a full "solutions report" which runs on average to 13 pages valuable free advice!!  No other practitioner offers this service.  In this report we advise on ALL the options and explain them clearly.  We advise on a course of action given the information you have given us ( the more information we have the better we can advise!)"

You are currently offline. Some pages or content may fail to load.