Corporate insolvency for dispute resolution practitioners: receivership
Corporate insolvency for dispute resolution practitioners: receivership

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Corporate insolvency for dispute resolution practitioners: receivership
  • Note
  • What is receivership?
  • Administrative receivership
  • LPA receiver
  • Court-appointed receivers
  • The effect of receivership on legal proceedings

This Practice Note refers to:

  1. the Insolvency Act 1986 as IA 1986

  2. the Law of Property Act 1925 as LPA 1925

  3. the Senior Courts Act 1981 as SCA 1981

  4. the Enterprise Act 2002 as EnA 2002

  5. the Proceeds of Crime Act 2002 as POCA 2002

  6. the Drug Trafficking Act 1994 as DTA 1994, and

  7. the Agricultural Credits Act 1928 as ACA 1928

Note

Receivership is a particularly complex area as there are many different forms of receivership. This guide is a summary of the different types of receivership and their impact on legal proceedings from a dispute resolution perspective.

What is receivership?

Receivership is a remedy whereby a receiver is appointed to protect an interest in assets. It is available for creditors and other third parties. There are several different types of receiver depending on the circumstances, which include:

  1. administrative receivers—though these are rarer since legislative changes in 2003

  2. LPA 1925 receivers

  3. court-appointed receivers—there are several different types of court receiver including those appointed under:

    1. SCA 1981

    2. POCA 2002

    3. DTA 1994

    4. ACA 1928

Receivers' powers are usually limited to the appointment document, whether that be a vesting document or a court order.

Administrative receivership

What is it an administrative receivership?

Note: as a result of changes made by the EnA 2002, a holder of a floating charge created