Chapter 17, 18, 19 - Receiverships Flashcards
Who may act as an Administrative Receiver?
Who may act as a Receiver?
AR - Only licensed IPs
Receiver - do not need to be IPs
Within what time frame does a charge need to be registed?
within 21 days of its creation
What date does a floating charge need to be created before to have an AR?
15 September 2003
exception for after 15.9.23
- Capital market arrangements exceeding £50m
- Large public finance projects where the provider of finance retains ‘step in rights’
AR procedure for appointment - the appointment instrument/documentation must be received and accepted by the AR by when?
by the end of the next business day
If acceptance is oral, then it must be confirmed in writing within 5 business days.
In what time frame must the AR notify CH of appointment?
within 7 days
In what time frame must the AR notify creditors of appointment?
28 days
In what time frame must the AR advertise appointment?
as soon as reasonably practicable
Does an appointment of an AR terminate the directors office?
No
Can an AR under S236 apply to court for an order that any office holder of the Company appear before court?
Yes
What effect does an appointment of AR have on employees?
Appointment of AR does not automatically terminate contracts of employment.
AR is personally liable on any contracts of appointment adopted by him.
14 days from appointment
If an AR is appointed can an out of court administration take place?
No
The court will only be able to appoint an administrator if the AR appointer consents or the charge under which the AR has been appointed is deemed invalid.
Does an AR have the power to disclaim a lease?
No
Does an AR receiver have the power to sell an asset subject to a fixed charge?
Yes (apply to court to do so)
Does an AR have power to employee and dismiss employees?
Yes
Does an AR have power to borrow money and grant security over assets of the Company?
Yes
Can an AR present or defend a petition for the winding up of the company?
Yes
Can an AR bring action under:
- directors wrongful/fraudulent trading
No
Can an AR bring action under:
- Preferences
- Transactions at undervalue
No
Can an AR remove directors from office?
No
Can an AR pay a dividend to unsecured creditors?
No
Does the AR have a duty to the company to preserve its goodwill and business?
No
If AR requests a statement of affairs, how long does nominate person have to prepare it?
21 days
AR must give notice to invite nominations for membership in creditors committee, such nominations should be received by what date?
The date specified in the notice
S48 duty - within what time period must an AR prepare a report to creditors after appointment?
Within 3 months
When does the AR need to supply accounts?
Accounts should be submitted within 2 months after the end of 12 months from the date of appointment and every subsequent 12 months.
and within 2 months of ceasing to act
Who does the administrative receiver not need to send APR to?
A Registrar of Companies
B Person by Whom he was appointed
C Supervisor of CVA
D Members of the creditors committee
C Supervisor of CVA
Does the AR need to submit a return on the conduct of the directors?
Yes
When does a Fixed Charge Receiver need to submit accounts?
Within 1 month of the expiration of 12 months from date of appointment, and thereafter within 1 month of every 6 months
Does a Fixed Charge Receiver need to submit a return on the conduct of the directors?
No
Does a Fixed Charge Receiver had statutory powers to enforce co-operation?
No
To whom must an AR give notice of his appointment?
- Gazette
- May advertise in such other manor as the AR sees fit
- The Company (ASARP)
- The Creditors (within 28 days)
Following appointment of AR can a ROT supplier seek to recover such goods from the company?
Yes
Can creditors with the benefit of a court judgement seek to enforce judgment when an AR is in office?
Yes
There is no moratorium or statutory protection when AR is in office.
Does the AR have statutory powers in S234-236?
Yes they can enforce co-operation and obtain possession
Within what time frame must the AR give notice of his resignation to Registrar of Companies?
Within 14 days
Within what time period must the AR send a copy of his final receipts and payments accounts to:
- CH
- The Company
- The appointer
- Creditors committee
Within 2 months of ceasing to act
Under what section of the act does the AR have a duty to pay preferential creditors?
S40
Who is the Administrative Receiver an agent of?
The Company
Does the Administrative Receiver do the prescribed part?
No
Part1A Moratorium - what is the IP called when appointed?
Monitor
If a company is in administration, can an AR be appointed?
No
Does the amount owed need to be included within the notice of appointment for an administrative receiver?
No
Does a brief description of any assets of the company that the person appointed has not been made receiver need to be included within the notice of appointment for an administrative receiver?
Yes
Does a fixed charge receiver by Law of Property Act 1925 have power to demand and recover rent due?
Yes
Does a fixed charge receiver by Law of Property Act 1925 have power to take possession and sell?
No
Does a fixed charge receiver by Law of Property Act 1925 have power to enforce co-operation?
No
