Receiver’s Duties

A receiver is personally liable for contracts made in their role unless exempted in the contract, but may seek indemnity from company assets. They hold a duty of care to act in the debenture holder’s best interest while also considering the minimal interests of other stakeholders.

Asset Sales and Corporate Obligations

When selling company assets, receivers must strive to achieve the best market price and notify creditors before selling to company officers. They are responsible for prioritizing payments to creditors and may pursue claims against former directors if mismanagement is identified.

Statutory and Contractual Duties

As agents, receivers are liable for contracts entered after appointment unless otherwise specified, and statutory obligations apply regardless of agency status, especially in environmental and planning contexts.

Court Oversight

Courts may review a receiver’s actions, oversee their remuneration, and direct performance if reporting obligations are unmet. Courts may relieve liability if an appointment is invalid.