A Receiver may be appointed by a secured creditor, or in special circumstances by the Court, to take control of the assets that are the subject of the security.
The charge, or security, held by the secured creditor under which the appointment of a Receiver is made may comprise:
- a non-circulating security interest (fixed charge) over particular assets of the company (e.g. land, plant and equipment); and/or
- a circulating security interest (floating charge) over assets that are used and disposed of in the course of normal trading operations (e.g. debtors, cash and stock).
The powers of the Receiver are governed by the charge document and Corporations Act 2001 Cth (the Act).
If a Receiver has, under the terms of their appointment, the power…