An Administrative Receiver

The Administrative Receiver is appointed by a holder of a fixed and floating charge over the assets and undertaking of a company, normally a bank.

The Administrative Receiver has the power to deal with the assets and business of the company for the benefit of his charge holder only. He does not have a responsibility to deal with the claims of other creditors or to make dividend payments to them.

On appointment, the Administrative Receiver takes control of the assets and business and he then has sole control. The directors lose their power to deal with the assets although they still have the statutory responsibilities of directors including the obligation to supply the Administrative Receiver with a Statement of the company's affairs setting out all assets and liabilities.

The Administrative Receiver will normally allow the company to continue to trade and thereby seek a buyer for the business as a whole. If this is not possible, he will sell off the individual assets and seek to repay the charge holder from the proceeds. Any surplus of funds and assets will be handed to a liquidator who will then repay creditors.

A Receiver over an asset in respect of which his appointer has security

A receiver is normally appointed under the law of Property Act 1925 or by virtue of an instrument that permits the appointment of a Receiver over a specified asset.

Under the Act the receiver only has the power to collect rents and maintain the building. The power of sale rests with the mortgage provider. However, the deed appointing the Receiver often permits the Receiver the power to sell the property.

A Receiver who has been appointed by the Court

The court has the power to appoint a receiver where there is no other facility to do so and it is necessary to protect the assets or there is some form of deadlock between managers.

Request a copy of the full Gore and Company Receivership Papers from enquiries@goreandco.com

Gore & Company acts as receiver in a variety of industries and has specific expertise in the search, identification and screening of potential acquisiton partners for businesses in receivership.

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