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An
Administrative Receiver is appointed to manage the
entire affairs of a company, and has the authority to
sell or otherwise realise the assets covered by the
floating charge as well as, subject to his own
remuneration, pass the proceeds of such realisations to
the debenture holder.
The appointment can be made after formal demand has
been made on the company and the company has not made
repayment within the time demanded.
The appointment must be advertised and the Registrar of
Companies must be notified within 7 days of the
appointment being made and also when the Receiver
ceases to act.
If the company is not in liquidation as well as
receivership, the receiver is liable to pay the
preferential creditors in priority to the debenture
holder who appointed him.
The receiver can take or defend proceedings in the
company’s name, appoint solicitors and generally
conduct the business of the company.
A receiver has various statutory reporting duties both
to the Registrar of Companies and the company’s
creditors.
The creditors can decide to appoint a committee to
assist the receiver, which involves attending meetings
and receiving the receiver’s reports.
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