A court appointed receivership is when a receiver has been appointed by the Court on the application of an aggrieved person/entity. Most frequently, the scenario involves a serious breakdown of a partnership or joint venture, typically when it has become insolvent or due to a serious dispute.
The Court appointed Receiver will have the same function as a privately appointed Receiver, such that he/she is appointed to take possession and recover assets of the company in order to resolve the subject of the aggrieved’s Court dispute.
Being bound by a Court order, the Receiver must act according to the terms of the Court order for which he/she is appointed and realise or manage the assets that are subject to the Receivership.
For more information on Receiverships or any similar issues, please contact Jonathan McLeod and Partners on (07) 3004 0800.