Appointment

A receiver is one who is appointed to a corporation with power to receive income and other property and to pay necessary outgoings, but with no power to carry on the corporation’s business or to sell or buy assets. If the appointee is given such powers, he or she is a receiver and manager. In practice, the term “receiver” includes a receiver and manager, and this is given statutory effect by s 416 of the Corporations Act 2001 (Cth) (CA), which also deems a person having power to manage the corporation’s affairs to be a receiver and manager however he or she is described.

There are two main types of appointment:

• • by the court (“court receiver”); and
• • pursuant to the powers contained in an instrument given by the company, usually to a secured party (“private receiver”).

See Appointment.