A neutral, qualified, external administrator, appointed by a secured creditor or a court to take charge of the affairs and property of a company until its debts are paid or a court matter is settled. The receiver is given custodial responsibility for the subject’s property, including tangible and intangible assets and rights.
The duty of a receiver is to secure the amount of money owed to the creditors (primarily the secured one/s who appointed them) of a company which is in receivership usually because it is experiencing financial difficulty. The receiver must then pay out the money they collect. The receiver must also notify ASIC of any possible offences they discover during the receivership.
The receiver’s powers are stipulated by the court or by the terms of the creditor’s security and the document appointing the receiver. The appointment of a receiver is an old equitable remedy, though appointment by a court is now authorised.
Sometimes, the receiver is also given power to take control of the company – in that case, they’re known as a receiver and manager.
The receiver must send ASIC an annual administration return (a detailed list of their receipts and payments) each year on the anniversary of their appointment.
The receiver is not required to provide reports to unsecured creditors.