Receivership

A creditor holding security such as an equitable mortgage may appoint a Receiver / Receiver & Managers, who will take control of the assets the subject of the security. The Receiver, who must be a registered Liquidator, will realise assets to satisfy the debt due to the secured creditor.

The powers of the Receiver are usually contained in the mortgage and further controlled by statutory powers contained in the Act. A Receiver will normally be given full powers to carry on the business, receive income and realise assets.

A Receiver may also be appointed by the Court where shareholders and/or partners are in serious dispute. A Court appointed Receiver must act in accordance with the terms of the Court Order.