The following Restructuring & Insolvency guidance note Produced in partnership with Peter Kelso, solicitor provides comprehensive and up to date legal information covering:
A receiver is one who is appointed to a corporation with power to receive income and other property and to pay necessary outgoings, but with no power to carry on the corporation’s business or to sell or buy assets. If the appointee is given such powers, he or she is a receiver and manager. In practice, the term 'receiver' includes a receiver and manager, and this is given statutory effect by section 416 of the Corporations Act 2001 (Cth) (CA), which also deems a person having power to manage the corporation’s affairs to be a receiver and manager however he or she is described.
There are two main types of appointment:
by the court (‘court receiver’), and
pursuant to the powers contained in an instrument given by the company, usually to a secured party (‘private receiver’)
A court receiver is not the agent of any party to the litigation in which he or she is appointed, but is an officer of the court. Interference with, or obstruction of, the exercise of their functions will be a contempt of court. As regards third parties, the receiver is a principal and personally liable, but has a right of indemnity against, and a lien over, the assets to which he or she is appointed for those liabilities.
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