Companies Act 1985

471 Powers of receiver

(1) Subject to subsection (2) below, a receiver has in relation to such part of the property of the company as is attached by the floating charge by virtue of which he was appointed, the powers, if any, given to him by the instrument creating that charge and, in addition, he has under this Part the following powers as respects that property, in so far as these are not inconsistent with any provision contained in that instrument, namely—

(a) power to take possession of, collect and get in the property from the company or a liquidator thereof or any other person, and for that purpose, to take such proceedings as may seem to him expedient;

(b) power to sell, feu, hire out or otherwise dispose of the property by public roup or private bargain and with or without advertisement;

(c) power to borrow money and grant security therefor over the property;

(d) power to appoint a solicitor or accountant or other professionally qualified person to assist him in the performance of his functions;

(e) power to apply to the court for directions in connection with the performance of his functions;

(f) power to bring or defend any action or other legal proceedings in the name and on behalf of the company;

(g) power to refer to arbitration all questions affecting the company;

(h) power to effect and maintain insurances in respect of the business and property of the company;

(i) power to use the company's seal;

(j) power to do all acts and to execute in the name and on behalf of the company any deed, receipt or other document;

(k) power to draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company ;

(l) power to appoint any agent to do any business which he is unable to do himself or which can more conveniently be done by an agent and power to employ and discharge servants;

(m) power to have carried out to the best advantage any work on the property of the company and in general to do all such other things as may be necessary for the realisation of the property ;

(n) power to make any payment which is necessary or incidental to the performance of his functions ;

(o) power to carry on the business of the company so far as he thinks it desirable to do so;

(p) power to grant any lease of the property, and to input and output tenants, and to take on lease any property required or convenient for the business of the company;

(q) power to rank and claim in the bankruptcy, insolvency, sequestration or liquidation of any person or company indebted to the company and to receive dividends, and to accede to trust deeds for creditors of any such person ;

(r) power to present or defend a petition for the winding up of the company ; and

(s) power to do all other things incidental to the exercise of the powers mentioned in this subsection.

(2) Subsection (1) applies—

(a) subject to the rights of any person who has effectually executed diligence on all or any part of the property of the company prior to the appointment of the receiver; and

(b) subject to the rights of any person who holds over all or any part of the property of the company a fixed security or floating charge having priority over, or ranking pari passu with, the floating charge by virtue of which the receiver was appointed.

(3) A person transacting with a receiver shall not be concerned to inquire whether any event has happened to authorise the receiver to act.