chapter  13
18 Pages

Corporate governance

It is the role of the administrative receiver to realise the assets subject to the floating charge and to pay off in priority the charges of the receivership, preferential creditors and money owing to charges. It is likely where there are substantial contracts that the receiver will also be appointed as manager, as the company will wish to continue its business during the receivership. The person who it purports to appoint as administrative receiver must agree to the appointment. The person appointed as administrative receiver must notify the company of his appointment and all of the company's creditors so far as their addresses are known to him. It should be the aim of the administrative receiver to get in the property that is subject to the charge and generally convert it to cash for payment of the sums owed to chargeholders and, where appropriate, to pay off any preferential creditors.