Who may appoint receiver and what are their duties under CA1965?

1. A receiver is a person appointed to take into his possession of the property of the company, which is a subject of a charge and to deal with it primarily for the benefit of the holder of charge.

2. Receiver is appointed by secured creditors or court in favour of creditors who wishes to enforce their security (usually the instrument of charge gives secured creditor the power to appoint a receiver. )

3. Receiver must lodge his account under section 190 with the Registrar.

4. The account must contain the aggregate amount of receipts and payments during the preceding period since his appointment.

5. The account must be lodged by the receiver within one month after six months of his appointment and every subsequent six months and within.

6. Receiver must lodge his account within relevant period.

7. The amount owing under that instrument during the relevant period and the estimates of total value of all assets of the company or other corporation which are a subject to the instrument.

8. According to section 191, a receiver appointed by a creditor secured by floating charge is required to pay certain preferential debts and it has to be paid first before any payment is made on floating charge.