The usual role of a Receiver is to enforce and protect the rights of a secured creditor to an entity at a time when the secured creditor believes their security is in jeopardy. In the case of a bank being the secured creditor, the Receiver acts to maximise the return to the bank.

A Receiver can be appointed to:

  • a company;
  • a partnership; or
  • an individual.

There are two (2) methods of appointment as a Receiver:

  1. Private Appointment – by a secured creditor who is generally a financial institution (but who can also be a private individual or a company). This is done by the execution of a Deed of Appointment by the secured creditor and the appointed Receiver.
  2. Court Appointment – The Court can make an Order appointing a Receiver. This is generally as a result of a partnership dispute or an application by an oppressed shareholder.
  3. Private appointments are for more common and the receiver can be appointed to certain or all assets and can be given power to manage a company and the sale of its assets. Some appointments may be over a debtor ledger only so as to minimise the return to a secured creditor without incurring additional costs. The information of the personal properties security register in 2012 requires secured creditors to register their interest on the register.