Explain the major differences between a liquidator and a receiver and describe how each of them is appointed.

A receiver is a representative of secured creditors appointed by creditor or by court on their behalf to enforce their security. Once the debt is paid, the receiver vacates the office and directors resume office.

A liquidator is appointed by court, or by members, or by members and creditors to take control of all the company's assets with a view of their realisation,the payment of all debts of the company, the distribution of any surplus of assets to members. At the end of liquidation a company is usually dissolved.

A receiver may be liable for certain debts incurred by him; a liquidator has no such liability.

A receiver's powers are conferred by the terms of debenture while a liquidator has a number of statutory powers.