Receiver or receiver and manager: appointment and responsibilities

Venugopal, A Vijayalakshmi and Ahmad, Muhamad Hassan and Arowosaiye, Yusuf Ibrahim and Masum, Ahmad (2025) Receiver or receiver and manager: appointment and responsibilities. In: Company Law in Malaysia. Sweet & Maxwell, Thomson Reuters, Kuala Lumpur, Malaysia., pp. 345-368. ISBN 978-629-7700-74-8

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Abstract

A receiver or a receiver and manager is a person through whom the secured creditor enforces his security which is in the form of a charge over the company’s assets – referred to as “debenture”. They may be appointed either by the debenture holder or by the court. His duties include, inter alia, carrying on the existing business on behalf of the company and once the company’s liability towards the secured creditors is discharged, any surplus thereto and the control of the company’s assets would thereby be restored to the directors of the company. Basically, a “receiver” is a person who receives the income and pays necessary outgoings to the company. While a “receiver and manager” has in addition to the power of a receiver, the authority to carry on the trade or business of the company. A receiver or a receiver and manager are appointed by courts pursuant to the Companies Act 2016 (“CA 2016”). In relation to the appointment of a receiver or a receiver and manager, to preserve the property pending litigation to decide the rights of parties, it is granted at the discretion of the court as provided in section 43 of the Specific Relief Act 1950. While the mode and effect of his appointment, and his rights, powers, duties, and liabilities, are regulated by Order 30 of the Rules of Courts 2012. Further, section 25(2) read with paragraph 6 of the Schedule to the Courts of Judicature Act 1964 mentioned the additional powers of the High Court to: “provide for the interim preservation of property the subject- matter of any cause or matter by sale or by injunction or the appointment of a receiver or the registration of a caveat or a lis pendens or in any other manner whatsoever”. Having said the above, this chapter discusses the appointment and duties and responsibilities of a receiver or a receiver and manager.

Item Type:	Book Chapter
Uncontrolled Keywords:	Receiver, receiver and manager, appointment, duties, responsibilities.
Subjects:	K Law > K Law (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Dr. Muhamad Hassan Ahmad
Date Deposited:	10 Nov 2025 10:23
Last Modified:	10 Nov 2025 10:23
URI:	http://irep.iium.edu.my/id/eprint/124240

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