Provisional Liquidator in UK Law

Leading Cases
  • Parkwell Investments Ltd v Mark Wilson (as Provisional Liquidator of Parkwell Investments Ltd) and Another
    • Chancery Division
    • 16 Octubre 2014

    The court is naturally cautious about appointing a provisional liquidator to a trading company where the consequence is almost inevitably to bring the company's trading to an end. In some cases (for example, where the trading is believed to be in fraud of the public) this may be the object of the appointment, but the importance of treading warily is just the same. The need for caution was a matter to which in Rochdale Rimer LJ (at [76]) and Lewison LJ (at [109]) both referred.

    When appointing a provisional liquidator on 18 March Hildyard J did not consider the circumstances to justify departure from the usual practice and therefore declined to require an undertaking. As I have indicated, he qualified that in case a contrary view should be reached on a challenge to his order and there should be a wish that the undertaking capture events that had occurred since the appointment had been made.

  • Fourie v Le Roux and Others (Further hearing on Freezing Order)
    • Chancery Division
    • 12 Noviembre 2004

    The starting point is a valuation on 30 July 2002 of the plant and equipment at R5.65 million by the then provisional liquidator, Mr Klopper. It is said that this was a "forced sale" value and is to be compared with the price of R13.011 million which HEE paid for plant and equipment on acquiring the Smiths Wheels business in early 2001. Taking as the appropriate exchange rate R11.58 to the £ sterling, R5.65 million converts into £487,910, say £490,000.

  • HM Revenue and Customs v Rochdale Drinks Distributors Ltd
    • Court of Appeal (Civil Division)
    • 13 Octubre 2011

    The usual basis on which such an appointment is sought is because of a risk of jeopardy to the company's assets, namely the risk of their dissipation before the winding up order is made, with the consequence that their collection and rateable distribution between the company's creditors will be frustrated.

    If there is any risk that, pending the hearing of the petition, records may be lost or destroyed, that will also found the basis for the appointment of a provisional liquidator, who will be able immediately to secure them and commence his own inquiries into the affairs of the company and the conduct of its management.

    If a business is shut down wrongly, the cross-undertaking is unlikely to provide adequate compensation to the company concerned, let alone to the employees who will have lost their jobs and to whom no cross-undertaking will usually have been offered. This latter consequence may hamper the company and its directors in defending allegations made in the petition.

    Lastly, it is important to recall that the petition in this case is a creditor's petition. There is power under section 124A of the Insolvency Act 1986 to present a winding up petition on the ground that it is expedient in the public interest that a company should be wound up. But the power to present such a petition is reserved to the Secretary of State alone. At times it seemed to me that HMRC's appeal to the public interest trespassed into forbidden territory.

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Legislation
  • The Insolvency (England and Wales) Rules 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ... ... Rules relating to the carrying out of the functions of—(a) a liquidator, provisional liquidator, administrator or administrative receiver of a ... ...
  • Insolvency Regulations 1994
    • UK Non-devolved
    • 1 de Enero de 1994
    ... ... “liquidator” includes, in the case of a company being wound up by the court, the ... ’s general remuneration while acting as interim receiver, provisional liquidator, liquidator or trustee Official receiver’s general ... ...
  • Insolvent Partnerships Order 1994
    • UK Non-devolved
    • 1 de Enero de 1994
    ... ... (a) in winding up, the liquidator of an insolvent partnership or corporate member; and ... (b) in ... (a) as its liquidator, provisional liquidator or administrator, or ... (b) as trustee of the partnership ... ...
  • Insolvency Rules 1986
    • UK Non-devolved
    • 1 de Enero de 1986
    ... ... CHAPTER 3 ... PROPOSAL BY ADMINISTRATOR OR LIQUIDATOR (HIMSELF THE NOMINEE) ... 1.10. Preparation of proposal ... 1.11 ... Application of Rules in Chapter 3 ... CHAPTER 5 ... PROVISIONAL LIQUIDATOR ... (NO CVL APPLICATION) ... 4.25. Appointment of ... ...
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Books & Journal Articles
  • Index
    • Appendices
    • Law of Insolvent Partnerships and Limited Liability Partnerships
    • Elspeth Berry/Rebecca Parry
    • 657-670
    ... ... liquidator 455 final creditors’ meeting 459–60 Creditors’ voluntary winding up ... Act 1986 400–415 appointment of a liquidator or provisional liquidator 424–6, 447, 454–6, 465–7 appointment of a special ... ...
  • Preliminary Sections
    • Preliminary Sections
    • Law of Insolvent Partnerships and Limited Liability Partnerships
    • Elspeth Berry/Rebecca Parry
    • 1-21
    ... ... (s) 337 6.5.9 Limited partners 338 6.6 Appointment of a provisional liquidator or interim receiver 339 ... 6.7 Powers of the court on ... ...
  • Winding up Companies under Bermuda Insolvency Law
    • Part III. Commercial dispute resolution
    • Offshore Commercial Law in Bermuda - 2nd Edition
    • Ian R. C. Kawaley/Karen Skiffington
    • 367-398
    ... ... Commencement 372 Provisional liquidation 375 Use of provisional liquidation in Bermuda 376 Winding-up ... 379 Appointment, exercise of powers and conduct of liquidator 381 Position of secured creditors 382 Treatment of the claims of creditors ... ...
  • Liquidation: LLPs
    • Contents
    • Law of Insolvent Partnerships and Limited Liability Partnerships
    • Elspeth Berry/Rebecca Parry
    • 399-484
    ... ... liquidator).  Schedule 6 (preferential debts).  Schedule 7 (insolvency ... A liquidator or provisional liquidator, not being the official receiver, must vacate office if he ... ...
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Law Firm Commentaries
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Forms
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