LAWS2014 Lecture Notes - Lecture 11: Debenture, Secured Creditor, Supreme Court Act
Document Summary
Receivership occurs when a creditor has an interest in a particular asset. When money has not been properly repaid, you can appoint a receiver to deal with that particular asset. A company most commonly goes into receivership when a receiver is appointed by a secured creditor who holds security over some or all of the company"s assets. The receiver"s primary role is to collect and sell sufficient of the company"s charged assets to repay the debt owed to the secured creditor. Receivership derives from common law, whereas receivership is creation of statute. A receiver takes possession of property as an agent of the company to realise it for the benefit of debenture holders. A receiver may be appointed pursuant to a trust deed or debenture. This power is based in contract, so may be set aside for contractual reasons {i. e. s 52. The power to appoint is not lost due to delay (ch mckay pty ltd).
