What is the effect of a court-appointed receiver on a company?
Ontario, Canada
The following excerpt is from Ravelston Corporation Limited (Re), 2007 CanLII 2663 (ON SC):
When a court-appointed receiver is appointed in the normal course, “the receiver-manager is given exclusive control over the assets and affairs of the company and, in this respect, the board of directors is displaced.” TD Bank v. Fortin et al. (1978), 1978 CanLII 1934 (BC SC), 85 D.L.R. (3d) 111 at 113 (B.C.S.C.). The essence of a receiver’s power is to settle liabilities and liquidate assets.
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