ABSTRACT
Where it is sought to enforce the terms of a debenture where there has been a default, the appropriate remedy would generally be to secure the appointment of a receiver. If it is sought to appoint a person under the terms of a floating charge, the person appointed is generally an administrative receiver and he must be a qualified insolvency practitioner: see s 388 of the Insolvency Act 1986. A person commits a criminal offence if he acts as a liquidator, administrator, or administrative receiver unless he has proper qualifications. The Secretary of State for Trade and Industry has recognised certain professional bodies which may authorise their members to act as insolvency practitioners. These bodies are The Law Society, the Institute of Chartered Accountants in England and Wales, the Chartered Association of Certified Accountants and the Insolvency Practitioners Association. The Secretary of State may also authorise individuals directly. Section 29(2) of the Insolvency Act 1986 provides that ‘administrative receiver’ means:
This latter situation covers the case where a receiver is appointed and there is a second charge over the company’s assets and undertakings. The receiver of the second charge would be an administrative receiver under this part of s 29(2). Where property is provided as security under the terms of a fixed charge, then the person appointed will be a receiver rather than an administrative receiver. He need not be a qualified insolvency practitioner. Such a receiver is not a manager.
