After an application to wind up a company is filed, the appointment of a provisional liquidation can occur. This is when a liquidator is appointed by the court in an interim capacity until the winding-up application is heard in court.

A Provisional Liquidator is generally appointed to act as “caretaker” over a company under any of the following circumstances:

• when there is a risk the company’s assets could be lost or made unavailable before the winding up application is heard in court;
• when company shareholders believe the directors are not discharging their duties properly, or are acting recklessly or in their own interests; or
• when there is a need to protect the company’s assets or its business.