By the end of this sub unit, you should be able to:
1. Differentiate the law on receivership from the governing legislation and principles on receivership from case law.
2. Explain the type of appointment, procedure, role and source of appointing a receiver.
3. Identify and explain the powers of the Board upon appointment of a receiver, the powers and liabilities of a receiver and the termination of a receiver.
4. Identify the difference between a receiver and a manager.
5. Prioritise the payment of debts on claims of debenture holder secured by a floating charge and appreciate that there is no right to set off except with respect to mutual debts.
The law on receivership is mainly based on common law but the governing legislation is under Companies Act 1965.