| Commentary

163 Indemnity and remuneration

| Commentary

163 Indemnity and remuneration

Where the appointment of a receiver or manager under a debenture is invalid (by reason of the invalidity of the instrument of appointment or otherwise), the court may order the appointor to indemnify the receiver against any liability which arises solely by reason of the invalidity of the appointment1. The steps a receiver takes in the interests of a debenture-holder are often damaging to the company. If such steps would have been proper but for the invalidity of the security, the statutory indemnity applies. However, receivers should continue to take express indemnities, partly because

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