October 1998

2.1 Circumstances of appointment

If at any time after the presentation of a winding-up or bankruptcy petition (and before a winding-up or bankruptcy order is made) the court considers that it is necessary for the protection of the company’s or debtor’s (‘the insolvent’s’) property, it may appoint the official receiver as provisional liquidator or interim receiver. Alternatively, where a winding-up petition has been presented any insolvency practitioner may be appointed as provisional liquidator. In most cases the applicant will be the petitioner. The majority of such applications are made by the Secretary of State who is also the petitioner under section 124A (winding up in the public interest). If there has been a referral to an insolvency practitioner under section 223 following the presentation of a bankruptcy petition the court may appoint that practitioner to be interim receiver of the debtor’s estate.

2.1a Public Interest Unit official receiver to act in all provisional liquidations

The official receiver at Public Interest Unit will deal with all cases where the official receiver is appointed provisional liquidator. This is to maintain a core knowledge in provisional liquidations in one unit. The provisional liquidation will be run by Public Interest Unit but the local official receiver may be asked to assist at some stage.

Where a local official receiver is approached by a potential applicant, with a view to the official receiver being appointed as provisional liquidator, the potential applicant should be referred to Public Interest Unit. Should it be necessary for the local office to contact Public Interest Unit, it is preferable for this to be at official receiver level (at both ends).

This does not effect official receiver appointments as Interim Receiver or Insolvency Practitioner appointments as provisional liquidator.

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