An Introduction To Insolvency Law - Part Two

5. Receivership

5.1 Introduction

Receivership is a form of administration which may apply to corporations, partnerships and individuals. However, receivership most commonly applies to corporate bodies. As a result, this paper will focus on corporate receivership.

A Receiver is appointed in respect of a corporation to take control of property, or to secure property (i.e. retrieve), in order to protect the rights of a party entitled to the property. This form of administration may encompass all of the property of a corporation or be limited to one or a number of items of property.

5.2 Appointment of a Receiver

Receivers may be appointed privately by a secured creditor under an instrument of appointment or by the Court on application being made by a party who seeks to protect its interests.