Powers of receivers or managers in a voluntary liquidation process:

• A person appointed as a receiver of a property of a company shall, subject to the rights of any prior incumbrances:
  • Take possession of and protect the property.
  • Receive the rents and profits.
  • Discharge the outgoings in respect of the property.
  • Realize the security of those on whose behalf that person is appointed, but unless also appointed as a manager, that person shall not carry on a business or an undertaking.
• From the date of the appointment of a receiver or manager, the powers of the directors or liquidators in the voluntary liquidation of a member to deal with the property or undertaking over which the receiver or manager is appointed shall cease until the receiver or manager is discharged.
• Where, on the appointment of a receiver or manager, the company is being wound up under the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180), or the property concerned is in the hands of any other officer of the Court, the liquidator or officer is not bound to relinquish control of the property to the receiver or manager except under an order of the Court.

(3 points @ 2 marks each = 6 marks)