222. Statement that receiver appointed Flashcards
1
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- Statement that receiver appointed
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General overview
[222.01] Upon the appointment of the receiver or manager, or the appointment of a liquidator of the corporation, every invoice order for goods or business letter issued by or on behalf of the corporation shall state that the corporation is under receivership. This serves as notice to anyone dealing with the company that it is in receivership, and its ability to pay for any goods and services supplied is limited to the extent of its available assets, unless it falls within s 218(1), which renders the receiver personally liable. Hence, to safeguard themselves, most suppliers of goods and services would deal with the company in receivership on cash terms upon delivery, and not on credit.
