Commentary

D6.722 Receivership

Corporate tax
Corporate tax | Commentary

D6.722 Receivership

Corporate tax | Commentary

D6.722 Receivership

Status of a receiver

The powers of an administrative receiver are identical to those of an administrator1. An administrative receiver is an agent of the company2; however, it is an unusual agency3, because he owes his primary duty to his appointer (ie the bank), not to the company. The principal (ie the company), cannot dismiss him and the principal cannot instruct him as to how his duties should be performed. A sale of assets under the charge is therefore treated as a sale by the company, which is liable for any tax arising. An administrative receiver is not

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