Administrative receiver

Historically, a receiver (www.practicallaw.com/1-107-7111) or manager of the whole or substantially the whole of a company’s property. An administrative receiver is appointed on behalf of the holder of a debenture  (www.practicallaw.com/7-107-6043) of the company which as created was a floating charge (www.practicallaw.com/0-107-5773). An administrative receiver is authorised to get in the assets, run the company’s business and dispose of the assets either piecemeal or as part of the sale of the business as a going concern. An administrative receiver's principal duty is to realise the indebtedness owed to the secured creditor by whom he was appointed. Under the Enterprise Act 2002 (effective from 15 September 2003), administrative receivership (www.practicallaw.com/4-107-6365) was effectively abolished as a remedy for all floating charges created after the Act, subject to some important but limited exceptions. The Act does not apply to floating charges created prior to the Act coming into force. The Act does not affect the right of a holder of a fixed charge to appoint a receiver.

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