ABSTRACT
In many ways, the position of an administrative receiver does not differ from that of a Law of Property Act receiver or receiver of part only of the property. For example, any receiver appointed under a charge which was floating when created will have first to pay those who would be preferential creditors in a liquidation out of the assets subject to the charge13 and a liquidator may apply to the court to fix the remuneration of a receiver of any type.14 In summary, the differences are as follows:
(a) A debenture holder with the power to appoint an administrative receiver has the power to veto a company administration order. This has given rise to the so called ‘lightweight floating charge’ which is not required for the additional assets it secures but in order to protect the lender’s rights from being damaged by an administration. An administrative receiver must vacate office if an administration order is made, whereas an ordinary receiver may remain in office.15
