As an insolvency practitioner, I occasionally see the impact that shadow and de facto directors can have on companies.
Section 461(k) of the Corporations Act 2001 (Cth) is a discretionary power of the court to order the winding
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Protection and recovery of value
A Receivership is an insolvency administration where a secured creditor, or in some circumstances the Court, appoints an independent and suitably qualified insolvency practitioner to take control of some or all of a company’s assets.
The powers of a Receiver are set out in the Corporations Act 2001 and the underlying security agreement or Court Orders in the case of Court appointed Receivers.
The Receiver’s role is to collect and realise enough of the company’s assets to discharge the secured party’ debts, subject to the order of priorities when making payments to creditors.
During a Receivership, the Receiver has no obligation to report to unsecured creditors or hold a meeting of creditors; however it is usually the case that the Receiver will contact suppliers and other stakeholders in the event that the business is traded-on.
Occasionally, a Receiver will be appointed by the Court where there is a dispute amongst directors and/or shareholders, in order to preserve the assets of the company.
To speak with us further regarding whether a Receivership may be appropriate in your situation, please contact us on 08 9215 7900 for a cost and obligation free consultation.