After a winding up application is filed, the Court may appoint a Provisional Liquidator.
This is to ensure the company’s assets are preserved until the winding up application is heard and the Court decides whether to appoint a Liquidator.
The Provisional Liquidator is empowered to take possession the company’s assets until the hearing and this also entails carrying on the company’s business.
The appointment of a Provisional Liquidator essentially freezes any creditor proceedings.
A director, shareholder, creditor or the Australian Securities & Investments Commission may apply for the appointment of a Provisional Liquidator to ensure assets are maintained prior to a winding up order being granted.