| Commentary

(e) Receivership

| Commentary

(e)     Receivership

Receivership as a concept is aimed at the protection of the company's assets at the behest of a charge holder for the charge holder's benefit in preference to other creditors. The receiver may be appointed by the court or the charge holder. The latter will be a fixed charge receiver (also called a Law of Property Act receiver) or an administrative receiver if the security is a floating charge over the company's assets.

(i)     Court-appointed receivers

The appointment of a receiver by the court is said to terminate the contracts of employment of the employees (Reid v Explosives Co Ltd (1887) 19 QBD 264, CA; Re Foster Clark Ltd's Indenture Trusts [1966] 1 All ER 43,

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