Receiverships are governed by the Corporations Act and are usually appointed by secured creditors where the company has defaulted on one or more payments of its secured loan.
In these circumstances, the Receiver’s role is to take control of the secured assets (being the assets of the company) and realise them for the benefit of the secured creditor. In these circumstances, the Receiver is an agent of and accounts to the Appointor.
Another form of Receivership is a Court Appointed Receiver. This usually occurs where there is a dispute between the owners of the company or the property over which the Receiver is appointed. In these circumstances, the Receiver’s role is to act as a form of mediator, take control of the assets to which he is appointed, to realise those assets and distribute the proceeds between the owners.