217. Disqualification for appointment as receiver Flashcards
- Disqualification for appointment as receiver
General overview
[217.01] Usually, when a company issues a debenture secured by its property, whether on a fixed or floating charge, the debenture provides for the appointment of a receiver, or receiver and manager, to realise the charge upon the company’s default. The debenture created by the company is governed by s 131 of the Act, and requires registration within 30 days of its creation to be valid against the liquidator and its creditors. The legal relationship between the debenture holder and the company is governed by the law of contract and credit and security. Part VIII of the Act governs certain aspects of this area of the law, namely, who can be a receiver and manager, the liability of the receiver, his remuneration, receiver’s accounts, and most importantly, the scheme of priority payments that a receiver has to observe under s 226.
