How are receivers paid?

Receivers are paid by the company in receivership. Receivers take their fees from the money that is raised when they sell the company’s charged assets or trade its business.

Receivers negotiate their fees with the secured creditor before they’re appointed. Unsecured creditors have no input into the receiver’s fees. A receiver’s fees may be challenged in court by ASIC, the voluntary administrator, the deed administrator or the liquidator.

Receivers usually obtain indemnities from their appointors but usually don’t like to call upon those indemnities.