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Unformatted text preview: 1 SS Lecture 11 Overview External administration o/view 25-001 Receivership 25-100-25-160 Voluntary administration 25 200 25 370 1 Voluntary administration 25-200-25-370 Winding up 26-100-26-190 Deregistration 26-200-26-230 External administration overview Three types of external administration serve different purposes Receivership - way for secured creditor to get 2 their money back Voluntary administration - temporary safety zone from companys creditors, and possibly a chance to trade out of difficulties Winding up - liquidator sells off companys assets and distributes proceeds to creditors Receivership What is a receiver? Person appointed to take control of some or all of a companys assets 3 Who is allowed to be appointed? A registered liquidator Who may appoint a receiver? Court Secured creditor Function of the receiver Broadly, where appointed under a charge (i.e., by a secured creditor), receivers function is to collect the property secured 4 by the charge, sell it and distribute the proceeds to the chargee (i.e., the secured creditor) Receiver is an agent of the company Powers and liabilities of receivers Sources of receivers powers: s 420 HRS p512 Instrument of charge 5 Instrument of charge Has various types of liability Indemnity routinely obtained from appointer Duties of receivers Receiver owes duties to the appointer Also owes duties to the company Fiduciary duties 6 Fiduciary duties Duties as officer s 180, 181, 182, 183 Duties in relation to sale of assets General law and s 420A HRS p513 2 Voluntary administration Goal of the VA provisionss 435A(HRS 516): Maximise chance of company continuing in 7 business, or If that not possible, provide a mechanism for creditors and members to get a better return than from a winding up Some evidence of success How is goal achieved?...
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- Three '08