Companies Act, 1990

Court may determine or limit receivership on application of liquidator.

176.—The Principal Act is hereby amended by the insertion after section 322 of the following section—

“322B.—(1) On the application of the liquidator of a company that is being wound up (other than by means of a members' voluntary winding up) and in respect of which a receiver has been appointed (whether before or after the commencement of the winding up), the court may—

(a) order that the receiver shall cease to act as such from a date specified by the court, and prohibit the appointment of any other receiver; or

(b) order that the receiver shall, from a date specified by the court, act as such only in respect of certain assets specified by the court.

An order under this subsection may be made on such terms and conditions as the court thinks fit.

(2) The court may from time to time, on an application made either by the liquidator or by the receiver, rescind or amend an order made under subsection (1).

(3) A copy of an application made under this section shall be served on the receiver and on the person who appointed him not less than 7 days before the hearing of the application, and the receiver and any such party may appear before and be heard by the court in respect of the application.

(4) Except as provided in subsection (1), no order made under this section shall affect any security or charge over the undertaking or property of the company.”.