A receiver is appointed by a creditor in executing the terms of a floating charge. The receiver is the representor of the company and has a fiduciary duty against the company to act in its best interests. The role of the receiver is twofold: first, to secure the payment of the creditor who appointed him and second, to secure that the interests of the company are protected.
The appointment of a receiver has the advantage of enabling the creditors to recover their receivables in an efficient way and get rid of the uncooperative stance of the companies. This does not mean, though, that the receiver is free to act irrespective or out of the best interests of the company.
The procedure of receivership and the appointment of receiver out of court is supported by legal proceedings, especially in cases where the directors of the company contest such appointment. Our law firm provides legal support both to companies and creditors for the appointment of a receiver.