Because a Receiver is appointed by a creditor, the Receiver must act in the best interests...

Because a Receiver is appointed by a creditor, the Receiver must act in the best interests of that creditor, not the company. Do you agree with this statement? Explain why or why not. You must refer to law.

Solutions

Expert Solution

Yes I strongly agree with the statement

Once a receiver has been appointed, they will act in the best interests of the creditor (the bank) to bring back the money it is owed. If more than one creditor holds a charge against the company, repayment priority will be dictated by the level of the securities.

It may be that the receiver believes the best result for the creditors will be achieved by allowing the business to continue to trade, or by facilitating the sale of the business to recover the full debt owed. Ultimately, it is the receiver who will decide the fate of the business, and advice from the company directors may not be sought.

The receiver must also investigate the conduct of the company directors to ensure they have acted within the regulations governing receivership, before reporting their findings to the Department for Business, Enterprise and Regulatory Reform (DBERR).

Rights of reciever

The ability to collect any rental income from a property the ability to keep the property insured

Power to take possession of a property

The power to put a property up for sale

The power to grant or surrender leases

Please UPVOTE if found useful

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Agency theory suggests that a way to motivate managers to act in the best interests of...

Agency theory suggests that a way to motivate managers to act in the best interests of the owners/shareholders is to link managerial compensation to performance measures such as net income or share prices. However, such linkage imposes some risk on the managers. Required: (a) What are the agency risks that are referred to in the above statement? (b) How can the compensation risk imposed on corporate managers be controlled or reduced? (c) Inclusion of shares and options in managerial compensation...

131Duty of directors to act in good faith and in best interests of company (1) Subject...

131Duty of directors to act in good faith and in best interests of company (1) Subject to this section, a director of a company, when exercising powers or performing duties, must act in good faith and in what the director believes to be the best interests of the company. (2) A director of a company that is a wholly-owned subsidiary may, when exercising powers or performing duties as a director, if expressly permitted to do so by the constitution of...

the foreclosure sale is usually conducted by the a. county sheriff orcourt appointed receiver b. judge...

the foreclosure sale is usually conducted by the a. county sheriff orcourt appointed receiver b. judge who issued the decree of judgement in which foreclosure was permitted c. original seller or lender d. buyer or current occupant

Are “free trade” agreements in the best interests of the United States?

Which of these best describes the future interests of C and her heirs?

(Business Law)A deeds valuable acreage to B, expressly stating in the deed “to B as long as the land is used as a nature preserve, and if that condition is broken, then to C and her heirs in fee simple absolute.”Which of these best describes the future interests of C and her heirs? 1) Life estate 2) Fee Simple Defeasible 3) Possible Remainder Interest 4) C and her heirs have no future interest in the land.

When encrypting data, we must ensure that both the sender and the receiver are in possession...

When encrypting data, we must ensure that both the sender and the receiver are in possession of the correct keys to allow them to either encrypt or decrypt the messages successfully. There are two main types of encryption defined by the number of different keys used. (10 marks total) i. Name each type and briefly explain how they are different? ii. Name one popular algorithm used for each type of encryption. iii. A user would like to send a long,...

Fill in the blanks with words that would best complete the passage. carrier reimburses receiver catalog...

Fill in the blanks with words that would best complete the passage. carrier reimburses receiver catalog of goods buyer settles bill of lading seller issuer When an international transaction will be completed with a letter of credit, the buyer will contact the ______ bank, outlining the bank's obligations to pay on the letter of credit and the buyer's obligation to pay the bank. The letter of credit is sent to the _____, stating that once the...

VNTRs are useful in DNA forensics because ________. a. the VNTRs act as an identifier for...

VNTRs are useful in DNA forensics because ________. a. the VNTRs act as an identifier for a group of individuals b. the VNTRs have very little variation in length c. the VNTRs have exactly the same sequence between people d. the number of VNTRs varies between people

Within the equity section of the balance sheet, any non-controlling or minority interests would be best...

Within the equity section of the balance sheet, any non-controlling or minority interests would be best described as: Question 9 options: A.minority shareholders in subsidiaries that have been consolidated. B. minority interests the company has in joint ventures. C. minority shareholders that have significant influence but less than 50 percent control.

In Canada Why is the legal regulation of health professions important? What competing interests must be...

In Canada Why is the legal regulation of health professions important? What competing interests must be balanced by regulatory bodies and governments? What are the implications of the absence of regulation on patients/the public, the health system, and the practitioners themselves?

Subjects