Restriction on the Appointment of Law of Property Act Receivers under Fixed Charges
The Law of Property Act 1925 provides that if the mortgagor (ie your company) is in liquidation then the courts permission is not required before a Law of Property Act (LPA) Receiver can be appointed.
By contrast If your company is in Administration, then no steps can then be taken to enforce any security over the company's property (such as the appointment of a Law of Property Act Receiver) except with the leave (permission) of the court or with the consent of the Administrator. (Source of law - Paragraph 43 of Schedule B1 of The Insolvency Act 1986)
Existing receivers may remain in office but may not realise security without court permission.
For more information on receivers appointed under fixed charges or for a FREE INITIAL MEETING please contact Chris Parkman.