The following Restructuring & Insolvency guidance note Produced in partnership with John Hughes of Shakespeare Martineau LLP provides comprehensive and up to date legal information covering:
Where a company is in administration, any receiver of part of the company's property shall vacate office if the administrator requires him to. The case of Promontoria (Chestnut) Limited v Craig considered the basis on which administrators may require receivers to vacate office, for further details, see News Analysis: Administrators’ decision to remove receivers was unreasonable (Promontoria (Chestnut) Ltd v Craig and another).
The appointment of an administrator creates a moratorium. This will prevent a mortgagee from enforcing its security without the leave of the court or the consent of the administrator. For more information on the moratorium in administration, see Practice Notes: The moratorium in administration and Lifting the administration moratorium—appointment of fixed charge receiver.
Although the appointment of a liquidator does not terminate a receivership, it terminates the receiver’s entitlement to act as agent of the company and therefore exposes him to risk of personal liability.
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