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Companies Act, 1990

PART VIII

Receivers

Disqualification for appointment as receiver.

170.The Principal Act is hereby amended by the substitution for section 315 of the following section—

“315.—(1) None of the following persons shall be qualified for appointment as receiver of the property of a company—

(a) an undischarged bankrupt;

(b) a person who is, or who has within 12 months of the commencement of the receivership been, an officer or servant of the company;

(c) a parent, spouse, brother, sister or child of an officer of the company;

(d) a person who is a partner of or in the employment of an officer or servant of the company;

(e) a person who is not qualified by virtue of this subsection for appointment as receiver of the property of any other body corporate which is that company's subsidiary or holding company or a subsidiary of that company's holding company, or would be so disqualified if the body corporate were a company.

References in this subsection to an officer or servant of the company include references to an auditor.

(2) If a receiver of the property of a company becomes disqualified by virtue of this section, he shall thereupon vacate his office and give notice in writing within 14 days to—

(a) the company;

(b) the registrar of companies;

(c) (i) the debenture-holder, if the receiver was appointed by a debenture-holder, or

(ii) the court, if the receiver was appointed by the court, that he has vacated it by reason of such disqualification.

(3) Subsection (2) is without prejudice to sections 107, 319 (2) and 321.

(4) Nothing in this section shall require a receiver appointed before the commencement of section 170 of the Companies Act, 1990, to vacate the office to which he was so appointed.

(5) Any person who acts as a receiver when disqualified by this section from so doing or who fails to comply with subsection (2), if that subsection applies to him, shall be guilty of an offence and shall be liable—

(a) on summary conviction, to a fine not exceeding £1,000 and, for continued contravention, to a daily default fine not exceeding £50;

(b) on conviction on indictment, to a fine not exceeding £5,000 and, for continued contravention, to a daily default fine not exceeding £250.”.