|
Click here for a brief summary of Receiverships.
Contact us to discuss the specific details of your individual situation.
All section references relate to the Corporations Act, 2001.
WHY APPOINT A RECEIVER?
Receiverships are governed by the Corporations Act and usually are initiated by the company's secured creditor, ie: financier. Receivers can also be appointed by the Court upon the application of a creditor, director, shareholder or some other party with a vested interest.
Receivers are usually appointed by secured creditors where the company has defaulted on one or more payments of its secured loan. In these circumstances, the receiver's role is to take control of the secured assets (being the assets of the company) and realise them for the benefit of the secured creditor. In these circumstances, the Receiver is an agent of and accounts to the appointor.
Another form of Receivership is a Court appointed Receiver. This usually occurs where there is a dispute between the owners of the company or the property over which the Receiver is appointed. In these circumstances, the Receiver's role is to act as a form of mediator, take control of the assets to which he is appointed, to realise those assets and distribute the proceeds between the owners.
Most of the discussion below refers to a Receiver appointed by a secured creditor.
Back to top^
HOW DOES A RECEIVERSHIP BEGIN?
Once a default under a charge occurs, and the secured creditor makes the decision to appoint a Receiver, the appointment can be made simply by execution of a Deed of Appointment by the secured creditor and the Receiver.
A Court appointed Receiver occurs upon the application to the Court.
Back to top^
WHO CAN ACT AS A RECEIVER?
A Receiver appointed by a secured creditor must be a registered liquidator, registered by the ASIC.
A Court appointed Receiver must be an official liquidator, registered through the Supreme Court of Queensland.
Back to top^
WHAT HAPPENS ON THE APPOINTMENT OF A RECEIVER?
Broadly, the Receiver's responsibility is to secure and realise the charged assets and distribute the proceeds to the secured creditor(s) and the employees (if applicable).
If there is a surplus of funds available after payment of these priority liabilities and the costs of the Receivership, then those funds will be returned to the company or a Liquidator, if one has been appointed.
The Receiver will usually not undertake any investigations, but does have a duty to report on certain matters to the ASIC and is under an obligation to report to the ASIC any offences by the directors which he may identify.
Back to top^
WHO MUST THE RECEIVER REPORT TO?
The Receiver usually is not required to report to all creditors.
The Receiver, as agent, will report solely to the secured creditor/appointor.
He also has an obligation to report certain matters to the ASIC.
Back to top^
ENDING A RECEIVERSHIP
Once the Receiver has recovered and realised all assets, completed his investigations and disbursed all available funds, the Receivership can be finalised. This can be done by notifying the appointor and lodging a Notice Ceasing to Act with the ASIC.
Contact us to discuss the specific details of your individual situation.
Back to top^ | 
