Appointment of Interim Liquidator in Corporate Law: Legal Details

The inability to make decisions in a company can lead to a liquidation application. According to Article 227 of Cap. 113, the Court has the power to appoint an interim liquidator to protect the company's assets.

Appointment Criteria: The Court considers the existence of a risk to the assets, the likelihood of a liquidation order, and the absence of other means of protection.

The application can be submitted by creditors, board members, or shareholders. The procedure is urgent, and the order is valid until the hearing of the liquidation application. The company may file an objection.

The interim liquidator, who may be an insolvency advisor, accountant, or lawyer, is appointed by the Court and may not sell property without approval.

Court Decision: Senior District Judge Mr. L. Paschalidis in corporate application 27/2025 ruled that the appointment of an interim liquidator can be made unilaterally in urgent cases, especially when there is a risk to the company's assets.

*Lawyer in Larnaca