Insolvency Act 1985

Receivers and managers appointed out of court

46 Appointment of receiver or manager

(1) The appointment of a person as the receiver or manager of a company's property under powers contained in an instrument—

(a) shall be of no effect unless it is accepted by that person before the end of the business day next following that on which the instrument of appointment is received by him or on his behalf; and

(b) subject to paragraph (a) above, shall be deemed to be made at the time at which the instrument of appointment is so received.

(2) This section shall apply to the appointment of two or more persons as joint receivers or managers of a company's property under powers contained in an instrument subject to such modifications as may be prescribed by the rules.

47 Liability for invalid appointment

Where the appointment of a person as the receiver or manager of a company's property under powers contained in an instrument is discovered to be invalid (whether by virtue of the invalidity of the instrument or otherwise), the court may order the person by whom or on whose behalf the appointment was made to indemnify the person appointed against any liability which arises solely by reason of the invalidity of the appointment.