Court Appointed Receivers
Sometimes a receiver is appointed by the court when there isn't a specific power under a contract to do so. Usually this is done for a short period and this requires the plaintiff to establish a number of matters before the court will appoint a receiver.
There are a number of legal matters that the court will look at before appointing a receiver including: -
- whether the plaintiff has a prima facie case;
- the balance of convenience;
- etc.
Typically, a receiver is also appointed as a manager so that the role goes beyond merely collecting property and it also extends to managing property or running the business.
A receiver is an officer of the court and is subject to its supervision.
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