No appointment of provisional liquidator where company assets not under threat

The recent case of In the matter of Nugisi Pty Ltd [2011] NSWSC 1512 involved the rejection of an application for the appointment of a provisional liquidator.

This case demonstrates the court's reluctance to appoint a provisional liquidator where the assets of the relevant company are not in jeopardy such that they would require the protection of such an appointment. The court considered that, although there were potential grounds on which an application for a court ordered winding up of the company could succeed, there was no suggestion that there was any imminent threat to the assets of the company. In these circumstances a provisional liquidator should not be appointed.