The following Commercial guidance note provides comprehensive and up to date legal information covering:
This Practice Note provides practical guidance on proper execution of simple contracts and deeds for administrative receivers.
An administrative receiver is a receiver or manager of the whole (or substantially the whole) of a company’s property. He is appointed by or on behalf of the holders of any debenture secured by a charge that, when created, was a floating charge. He must be a qualified insolvency practitioner.
A bank or lender would ordinarily take security over a company’s assets to secure lending to the company by way of a debenture. The debenture will include powers to appoint an administrative receiver, if entered into before 15 September 2003, and an administrator, if entered into since 15 September 2003. If an event of default occurs under the loan agreement between the business and the bank, the latter may enforce the security under the debenture by appointing an administrative receiver to recover moneys then due.
For more information on administrative receivership generally see Practice Note: Receivership—an introductory guide.
The most important thing to note as far as the execution of documents is concerned is that once an administrative receiver has been appointed to a company the directors of that company cease to have any capacity to enter into contracts or execute deeds.
The effect of the appointment of an administrator is to take the management of
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