Pt 5.2 - Receivership
Receivership occurs when an external person is appointed to take possession of a company’s property so it can be realised to repay a debt. Only a person registered as a liquidator by ASIC may act as a receiver.
A receiver is appointed: -
- by the court exercising inherent or statutory jurisdiction ~ s 1323(1) to stop dissipation of assets often in support of a Mareva Injunction; or
- by a person under a power conferred by statute or contract (e.g. a security document such as a debenture deed).
Receivership Disputes
Can arise in a number of ways including: -
- whether there is a right to appoint under the security instrument or by the Court;
- whether the appointment of the receiver was valid and if necessary challenging the appointment of a receiver;
- whether the receiver has the power to take a proposed course of action;
- whether a receiver can summons a person for examination;
- whether the receiver can take legal proceedings on behalf of the company.
Let Us Help You
- Understand the rights to appoint.
- Assist with the appointment of a receiver.
- Advise about the right to examine persons under an examination summons.
- Advise whether or not you as a receiver is entitled to bring proceedings.
* This content does not purport to give legal advice. Readers must obtain their own legal advice, that applies to the particular circumstances of their case, before taking any action at all.