All sections · Part XIII: Protected Cell Companies · Sub-Part VI: Receivership Orders
242 Functions of receiver and effect of receivership order
(1) The receiver of a cell —
and effect of
receivership order
(a) may do all such things as may be necessary for the purposes set
out in section 240(3); and
(b) has all the functions of the directors in respect of the business and
cellular assets of or attributable to the cell.
(2) The receiver may at any time apply to Court —
(a) for directions as to the extent or exercise of any function or
power;
(b) for the receivership order to be discharged or varied; or
(c) for an order as to any matter arising in the course of his
receivership.
(3) In exercising his functions and powers the receiver is deemed to act as
the agent of the protected cell company and shall not incur personal
liability except to the extent that he is fraudulent, reckless or grossly
negligent, or acts in bad faith.
(4) Any person dealing with the receiver in good faith is not concerned to
enquire whether the receiver is acting within his powers.
(5) Where an application has been made for, and during the period of
operation of, a receivership order, no proceedings may be commenced or
continued against the protected cell company in relation to the cell in
respect of which the receivership order was applied for or made except
with the consent of the receiver or the leave of the Court and subject
(where the Court gives leave) to such terms and conditions as the Court
may impose.
(6) For the avoidance of doubt, rights of set-off and secured interests,
including, without limitation, a chargee‘s rights under a charge, and
rights of enforcement thereof, are unaffected by the provisions of
subsection (5).
(7) During the period of operation of a receivership order —
(a) the functions of the directors shall cease in respect of the
business and cellular assets of or attributable to the cell in
respect of which the order was made, and
(b) where the company has entered into a recourse agreement
affecting the cell, the receiver of the cell shall be deemed a
director of the protected cell company in respect of the assets
liable under that agreement.
and effect of
receivership order
(a) may do all such things as may be necessary for the purposes set
out in section 240(3); and
(b) has all the functions of the directors in respect of the business and
cellular assets of or attributable to the cell.
(2) The receiver may at any time apply to Court —
(a) for directions as to the extent or exercise of any function or
power;
(b) for the receivership order to be discharged or varied; or
(c) for an order as to any matter arising in the course of his
receivership.
(3) In exercising his functions and powers the receiver is deemed to act as
the agent of the protected cell company and shall not incur personal
liability except to the extent that he is fraudulent, reckless or grossly
negligent, or acts in bad faith.
(4) Any person dealing with the receiver in good faith is not concerned to
enquire whether the receiver is acting within his powers.
(5) Where an application has been made for, and during the period of
operation of, a receivership order, no proceedings may be commenced or
continued against the protected cell company in relation to the cell in
respect of which the receivership order was applied for or made except
with the consent of the receiver or the leave of the Court and subject
(where the Court gives leave) to such terms and conditions as the Court
may impose.
(6) For the avoidance of doubt, rights of set-off and secured interests,
including, without limitation, a chargee‘s rights under a charge, and
rights of enforcement thereof, are unaffected by the provisions of
subsection (5).
(7) During the period of operation of a receivership order —
(a) the functions of the directors shall cease in respect of the
business and cellular assets of or attributable to the cell in
respect of which the order was made, and
(b) where the company has entered into a recourse agreement
affecting the cell, the receiver of the cell shall be deemed a
director of the protected cell company in respect of the assets
liable under that agreement.
