FACT WIKI · Concept
Provisional liquidation in Ireland
Provisional liquidation in Ireland
In Ireland, a provisional liquidator is a court-appointed liquidator who may be appointed after a winding-up petition has been presented and before the appointment of a liquidator.
Roles and functions
The provisional liquidator's purpose is to take control of and protect the company's assets pending the appointment of a liquidator. The Irish Legal Guide describes the usual powers as limited to collecting and protecting those assets.
How it works
An appointment requires sufficient grounds demonstrating why a provisional liquidator is necessary. A risk that company assets will be dissipated is one circumstance in which the court may make the appointment.
Section 626(2) of the Companies Act 2014, as enacted, allows the court to limit or restrict the powers of other company officers when it appoints a provisional liquidator.
Scope and limitations
Section 626(1) of the Companies Act 2014, as enacted, gives a court-appointed provisional liquidator the powers ordered by the court, subject to section 559(3) to (5). The appointment therefore does not by itself specify an identical set of powers in every case.
Background and related concepts
A court winding-up process begins with the presentation of a petition to wind up the company. That petition provides the procedural setting in which a provisional liquidator may subsequently be appointed.
References
Related stories
FactSnap stories are secondary summaries.