• Chapter 2 Chapter 2 — Provisions applicable to receivership and administrative receivership

    • 153. Notification that receiver has been appointed

      (1) When a receiver of any property of a Company has been appointed, every invoice, order for goods or services or business letter (whether in hard copy, electronic, or any other form) issued by or on behalf of the Company and all of the Company's websites, shall contain a statement that a receiver has been appointed.
      (2) If default is made in complying with subsection (1), the Company and any officer of the Company who knowingly and wilfully authorises or permits the default commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule.

    • 154. Liability for Contracts

      (1) A receiver is —
      (a) personally liable on any contract entered into by him in the performance of his functions (except in so far as the contract otherwise provides) and on any contract of employment adopted by him in the performance of those functions; and
      (b) entitled in respect of that liability to an indemnity out of the assets.
      (2) For the purposes of subsection (1), the receiver is not to be taken to have adopted a contract of employment by reason of anything done or omitted to be done within fourteen (14) days after his appointment.
      (3) Subsection (1) does not limit any right to indemnity which the receiver would have apart from that subsection, nor limit the receiver's liability on contracts entered into without authority, nor confer any right to indemnity in respect of that liability.

    • 155. Distribution of moneys

      (1) Subject to Section 170 (Power to dispose of charged property), any moneys received by the receiver shall be applied in the following order of priority —
      (a) in satisfaction of all costs and expenses incurred by any receiver and of all remuneration due to any receiver;
      (b) in payment of any debts or claims secured by a security, having priority to the security by virtue of which the receiver was appointed;
      (c) in payment of any debts or claims secured by the security by virtue of which the receiver was appointed; and
      (d) in payment of the surplus (if any) to the Company or person who is otherwise entitled to the property.

    • 156. Duties of receiver

      (1) A receiver shall —
      (a) act in good faith in carrying out his functions;
      (b) manage any property of the Company with due diligence; and
      (c) when exercising a power of sale of property of the Company, use reasonable care to obtain the best price reasonably obtainable in the circumstances.
      (2) A receiver is not obliged to act in accordance with subsection (1)(b) where to do so would prejudice the interests of the persons by whom or on whose behalf he was appointed.

    • 157. Accounts

      (1) The receiver shall —
      (a) within two (2) months after the end of twelve (12) months from the date of his appointment, and after every subsequent period of twelve (12) months; and
      (b) within two (2) months after he ceases to act as receiver,
      send to the Registrar, to the Company and to the person by whom he was appointed, accounts detailing his receipts and payments as receiver.
      (2) The accounts are to be in the form of an abstract showing —
      (a) receipts and payments during the relevant period of twelve (12) months; or
      (b) where the receiver has ceased to act, receipts and payments during the period from the end of the last twelve (12) month period to the time when he so ceased (alternatively, if there have been no previous accounts, receipts and payments in the period since his appointment as receiver).
      (3) A receiver who makes default in complying with this Section commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule.

    • 158. Application to Court for directions

      (1) A receiver of the property of a Company appointed under powers contained in an instrument, or the persons by whom or on whose behalf a receiver has been so appointed, may apply to the Court for directions in relation to any particular matter arising in connection with the performance of the functions of the receiver.
      (2) On such an application under subsection (1), the Court may give such directions, or may make such order declaring the rights of persons before the Court or otherwise, as it thinks just.

    • 159. Vacation of office

      (1) A receiver of a Company may at any time be removed from office by order of the Court (but not otherwise) and may resign his office by giving notice of his resignation in the manner prescribed in subsection (4).
      (2) A receiver must vacate office if he ceases to be licensed as an insolvency practitioner under Part 9 (Insolvency Practitioners).
      (3) At the time a receiver vacates office —
      (a) his remuneration and any expenses properly incurred by him; and
      (b) any indemnity to which he is entitled out of the assets of the Company,
      shall be paid out of any property of the Company which is in his custody or under his control at that time, in priority to any security interest held by the person by or on whose behalf he was appointed.
      (4) Before resigning or otherwise vacating his office a receiver shall give at least seven (7) days' notice of his intention to do so to —
      (a) the person by whom he was appointed; and
      (b) the Company or any liquidator appointed to it.
      (5) A notice given under subsection (4) shall specify the date on which the receiver intends his resignation to take effect.
      (6) When a receiver vacates office in accordance with this Section he shall, within fourteen (14) days after his vacation of office, send a notice to that effect to the Registrar.
      (7) If a receiver without reasonable excuse fails to comply with subsections (2) or (6), he commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule.