Commentary

14.8 Appointment of receivers and administrators

COMPANIES vol 10(2) borrowing and debentures
| Commentary

14.8 Appointment of receivers and administrators

| Commentary

14.8 Appointment of receivers and administrators

The debenture1 should usually provide for the appointment of receivers and administrators2.

The debenture should specify the powers of the receiver once appointed3. In particular, it is important that the receiver is stated to be the agent of the company, otherwise he may be deemed to be the agent of the debenture holder4. The absence of a provision entitling a debenture holder to appoint a receiver does not preclude the court from appointing its own receiver on application5, but the protection of the right within the debenture deed itself is important. The receiver should, in

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