If a company is in financial difficulty, a secured creditor or the court may put the company under the control of an independent person who can be a Receiver or a Receiver and Manager.
A Receiver's role is to:
- Collect and sell enough of the charged assets to repay the debt owed to the secured creditor (this may include selling assets or the company’s business);
- Pay out the money collected in the order required by law, and
- Report to ASIC any possible offences or other irregular matters they come across.
The Receiver owes a prime duty to the company’s Secured Creditor. The Receiver owes no duty to Unsecured Creditors other than a general duty of care.
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