Search results
Results from the WOW.Com Content Network
In law, receivership is a situation in which an institution or enterprise is held by a receiver – a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights" – especially in cases where a company cannot meet its financial obligations and is said to be insolvent. [1]
Both bankruptcy and receiverships are designed to help companies get out of debt and stay in business. “What bankruptcy is known for is providing people and companies with a fresh start ...
A receivership is when an external administrator known as a "receiver" (usually a "receiver and manager" if it requires controlling the company) is appointed by a secured creditor to sell off a company's assets in order to repay the secured debt, or by the court to protect the company's assets or carry out other tasks.
Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation or receivership following bankruptcy, which may result in the court creating a "liquidation trust"; or sometimes a court can mandate the appointment of a liquidator e.g. wind-up order in Australia) or voluntary (sometimes referred to as a shareholders ...
A receivership certificate entitles its holder to a portion of the receiver's collections on the failed institution's assets. Originally the only resolution method was to establish a temporary deposit insurance national bank that assumed the failed bank's deposits on behalf of the FDIC. [ 32 ]
The office of official receiver was established by the Bankruptcy Act 1883 (46 & 47 Vict. c. 52). Their role was originally confined to personal bankruptcy, but it was extended to companies in compulsory liquidation by the Companies (Winding Up) Act 1890 (53 & 54 Vict. c. 63). [1]
The receivership overseeing 1,500 tenants in Skid Row is on the verge of failing unless a L.A. Superior Court judge acts quickly, receiver Mark Adams said in court filings.
Whereas a receiver is expected to terminate the rights of shareholders and managers, a conservator is expected merely to assume those rights, with the prospect that they will be relinquished. [14] Robert Ramsey and John Head, law professors who both specialise in financial issues, suggest that an insolvent bank should go into receivership ...