Companies Act 2014 section 626

Powers of provisional liquidators

Section 626 sets out the powers granted to provisional liquidators appointed by the court and the court's ability to restrict the powers of other company officers during a provisional liquidation.

• A provisional liquidator only has the powers specifically granted by the court order, subject to the conditions in section 559(3) to (5)
• This reverses the previous position where a provisional liquidator automatically had all the powers of a full liquidator unless the court restricted them
• The court may also limit or restrict the powers of any other officers of the company as it sees fit
• The aim is to allow the company to continue operating as normally as possible while its assets are being secured and preserved