A receiver is an independent, qualified outsider who is sent in to take control of some or all of a company’s assets (also known as the security interest) during what is known as a receivership.
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’s main duty is to sell enough of the company’s charged assets (or collateral) so the secured creditor can be repaid. The receiver must then pay out the money they collect. Finally, the receiver must notify ASIC of any possible offences they discover during the receivership.
The receiver’s main loyalty is to the secured creditor that appointed them – although the receiver must also take care of any unsecured creditors by trying to get top dollar for any assets they sell.
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.