Who can appoint a Receiver over a Company?
A Receiver is usually appointed by a secured creditor under a Debenture containing a fixed and/or floating charge over all or most of the company’s assets.
Why is a Receiver appointed and not a Liquidator?
A Receiver is usually appointed because the principal under a debenture is in arrears, the interest under a debenture is in arrears, or some other event has happened by which under the terms of the debenture the security has become enforceable.
What are the powers of a Receiver?
The powers of a Receiver are essentially to manage the business of the company, carry it on and realise assets so as to repay the debenture holder.
The Receiver’s powers and duties depend largely on the terms of the debenture under which he/she has been appointed.
Source: HortiTrends News Room
