BUSN2101 Chapter Notes - Chapter 24-25: Security Interest, Unsecured Creditor, Secured Creditor
Document Summary
When a company becomes insolvent, it should go into external administration: receivership, voluntary administration, winding up. A receiver may be appointed to take control of all the company"s property (general receivership), or alternatively just one piece of the company"s property. S418: only someone who has been registered by asic as a liquidator can be appointed. Who may appoint a receiver: a supreme court or the federal court, a secured creditor who wishes to enforce their security. A receiver is an agent of the company, even though the appointing creditors has appointed the receiver to look after its interests. S420(1): gives a receiver the power to do all things necessary or convenient in order to achieve the objectives of the receivership. Fire any employees who are not required during receivership: review the company"s systems of internal control and ordering. Duties in relation to sale of company assets: s420a: to sell the property for the market price, or.
