How can money be recovered?
Receivership is a method for charge holders to recover monies from companies where a loan under a debenture is in arrears or some other event has happened by which, under the terms of the debenture, the security becomes enforceable, for example the company has gone into liquidation or the security is in jeopardy.
Types of appointments
- the most common type of appointment is where a receiver is appointed by a debenture holder on foot of a debenture document;
- a receiver may be appointed by the High Court under specific statutory powers such as that contained in the Conveyance Act 1881;
- a receiver may also be appointed by the High Court under its equitable jurisdiction under the Supreme Court of Judicature Act (Ireland) 1877; and
- a receiver may be appointed under the Rules of the Superior Courts, in this case a receiver may not be appointed by reference to a charge at all and indeed no charge is necessary for his appointment