“If a company is in financial difficulty, a secured creditor or the court may put the company into receivership.”

REQUIRED:

Answer the following questions in relation to receivership. Please support your analysis with relevant legislation and/or case law.

a)        Who/what is a receiver? Who appoints a receiver and why?

b)        What is the effect of the receiver’s appointment on

• the company;
• the directors;
• shareholders;
• secured creditors; and
• unsecured creditors?

Answer rating: 100% (QA)

a A receiver is a suitably qualified person and an independent person to take control of either some ... View the full answer