Ireland · Charges and receivers

Appointment of a receiver, the statement of affairs, the receiver's powers and the accounts

the Companies Act 2014 · sections 429 to 431, 433 to 436, 439 to 441 and 445 to 447

Receivership imposes duties on the company as well as on the receiver, and the company's duties start immediately. Where a receiver of the whole, or substantially the whole, of the property of a company is appointed, section 430(1) sets what follows for the company and its officers, including the statement of affairs the receiver is entitled to receive. Officers who treat the appointment as the end of their responsibilities create personal exposure.

The reporting cycle then runs on fixed dates. The receiver must send the Registrar the abstract required within 30 days after the expiry of the initial period of 6 months, and within 30 days after the expiry of each subsequent period of 6 months, and in the further case section 430(3)(b) describes. Section 441(2) imposes the same cycle except where section 430(3) applies. A receivership that continues quietly for a year has two abstracts due, not one.

Sections 433 to 436 govern qualification, resignation and removal. A receiver who becomes disqualified by virtue of section 433 must vacate office at that point and give written notice within the period section 433(3) sets. A receiver appointed under an instrument may resign only after giving at least 30 days' prior notice to the persons the section names (section 434(1)). Notice of proceedings seeking removal must be served on the receiver and on the person who appointed the receiver not less than 7 days before the hearing (section 435(2)).

Sections 439 to 441 and 445 to 447 govern powers, duties, accounts and enforcement. A receiver may not sell a non-cash asset of the requisite value by private contract to a person who is, or who within the 3 years before the date of appointment was, a person of the kind section 439(3) describes. An application under section 445 must be served on the receiver and on the appointor not less than 7 days before the hearing (section 445(5)).

Files 66, 67 and 68 of the IE-COMPANY package cover this situation. File 66 works through the appointment and the statement of affairs submitted to the receiver. File 67 works through qualification, resignation, removal and the notices to the Registrar. File 68 works through the receiver's powers and duties, the abstracts of receipts and payments, the sale restrictions and the enforcement of the receiver's duties.

This situation is covered by these files from the pack IE-COMPANY

• File 66 · Appointment of a receiver and the statement of affairs submitted to the receiver
• File 67 · Qualification, resignation and removal of a receiver and notice to the Registrar
• File 68 · Powers, duties and accounts of receivers and enforcement of their duties

ComplianceSME tracks the Companies Act 2014 and issues update files through the membership, so that you are never working from a superseded version. Membership

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