PART 69 - COURT'S POWER TO APPOINT A RECEIVER
|Scope of this Part||Rule 69.1|
|Court's power to appoint receiver||Rule 69.2|
|How to apply for the appointment of a receiver||Rule 69.3|
|Service of order appointing receiver||Rule 69.4|
|Receiver's application for directions||Rule 69.6|
|Receiver's remuneration||Rule 69.7|
|Non-compliance by receiver||Rule 69.9|
|Application for discharge of receiver||Rule 69.10|
|Order discharging or terminating appointment of receiver||Rule 69.11|
Scope of this Part
(1) This Part contains provisions about the court's power to appoint a receiver.
(2) In this Part ‘receiver’ includes a manager.
Court's power to appoint receiver
(1) The court may appoint a receiver –
(a) before proceedings have started;
(b) in existing proceedings; or
(c) on or after judgment.
(2) A receiver must be an individual.
How to apply for the appointment of a receiver
Service of order appointing receiver
(1) The court may direct that before a receiver begins to act or within a specified time he must either –
(a) give such security as the court may determine; or
(b) file and serve on all parties to the proceedings evidence that he already has in force sufficient security,
to cover his liability for his acts and omissions as a receiver.
Receiver's application for directions
(1) The receiver may apply to the court at any time for directions to assist him in carrying out his function as a receiver.
(1) A receiver may only charge for his services if the court –
(a) so directs; and
(b) specifies the basis on which the receiver is to be remunerated.
(2) The court may specify –
(a) who is to be responsible for paying the receiver; and
(b) the fund or property from which the receiver is to recover his remuneration.
(3) If the court directs that the amount of a receiver's remuneration is to be determined by the court –
(a) the receiver may not recover any remuneration for his services without a determination by the court; and
(b) the receiver or any party may apply at any time for such a determination to take place.
(4) Unless the court orders otherwise, in determining the remuneration of a receiver the court shall award such sum as is reasonable and proportionate in all the circumstances and which takes into account –
(a) the time properly given by him and his staff to the receivership;
(b) the complexity of the receivership;
(c) any responsibility of an exceptional kind or degree which falls on the receiver in consequence of the receivership;
(d) the effectiveness with which the receiver appears to be carrying out, or to have carried out, his duties; and
(e) the value and nature of the subject matter of the receivership.
(5) The court may refer the determination of a receiver's remuneration to a costs judge.
(1) The court may order a receiver to prepare and serve accounts.
(Practice Direction 69 contains provisions about directions for the preparation and service of accounts.)
(2) A party served with such accounts may apply for an order permitting him to inspect any document in the possession of the receiver relevant to those accounts.
(3) Any party may, within 14 days of being served with the accounts, serve notice on the receiver –
(a) specifying any item in the accounts to which he objects;
(b) giving the reason for such objection; and
(4) When the receiver applies for the examination of the accounts he must at the same time file –
(a) the accounts; and
(b) a copy of the notice served on him under this rule.
(5) If the receiver fails to comply with paragraph (3)(c) of this rule, any party may apply to the court for an examination of the accounts in relation to the contested item.
Non-compliance by receiver
(1) If a receiver fails to comply with any rule, practice direction or direction of the court the court may order him to attend a hearing to explain his non-compliance.
(2) At the hearing the court may make any order it considers appropriate, including –
(a) terminating the appointment of the receiver;
(b) reducing the receiver's remuneration or disallowing it altogether; and
(c) ordering the receiver to pay the costs of any party.
Application for discharge of receiver
(1) A receiver or any party may apply for the receiver to be discharged on completion of his duties.
Order discharging or terminating appointment of receiver
(1) An order discharging or terminating the appointment of a receiver may –
(a) require him to pay into court any money held by him; or
(b) specify the person to whom he must pay any money or transfer any assets still in his possession; and
(c) make provision for the discharge or cancellation of any guarantee given by the receiver as security.
(2) The order must be served on the persons who were required under rule 69.4 to be served with the order appointing the receiver.