Execution formalities—other receivers
Execution formalities—other receivers

The following Commercial practice note provides comprehensive and up to date legal information covering:

  • Execution formalities—other receivers
  • Capacity
  • Simple contracts
  • Deeds
  • Who can act as a witness
  • HM Land Registry requirements

Execution formalities—other receivers

This Practice Note provides practical guidance on the proper execution of simple contracts and deeds for receivers other than administrative receivers.

Capacity

A receiver is a manager of the whole (or substantially the whole) of a company's property. They are appointed by or on behalf of the holders of any debenture secured by a charge that, when created, was a floating charge. They 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 a receiver. 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 a receiver to recover moneys then due.

For more information on 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 a 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 a receiver is to take the management of the affairs, business and property of the company away from the directors and vest it with the receiver.

The receiver also acts as agent for

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