Receivership

How receivership works

Receivership occurs when a receiver is appointed to take control of some or all of a company's assets, most often by a secured creditor acting under a security interest, or sometimes by a court. The receiver's main task is to deal with the secured assets, typically by managing or selling them, so the secured creditor can be repaid. Receivership can run alongside other procedures such as administration or liquidation.

Focus of the appointment

A receiver's primary duty is usually owed to the party that appointed them, in relation to the secured property, rather than to creditors generally. Unsecured creditors may see little direct benefit from a receivership. This is general information only and not legal advice. The role is explained further at receiver.