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Receivers


1. What is a receiver?

There are many different kinds of receiver and their powers vary according to the terms of their appointment.

An administrative receiver is a receiver or manager of the whole, or substantially the whole, of a company's property who is appointed by or on behalf of the holders of any debentures of the company secured by a floating charge. He or she has the power to sell (or otherwise realise) the assets covered by the floating charge and apply the proceeds to the debt owed to the charge-holder.

Receivers who are not administrative receivers may be appointed in other circumstances. For example, under powers contained in an instrument or document creating a charge over a company's property, a receiver or manager may be appointed until the debt is recovered. Receivers may also be appointed under the Law of Property Act 1925.

2. Who gives notice of the receiver's appointment?

The person who appoints the administrative receiver, receiver or manager, or has them appointed under the powers contained in an instrument, is responsible for informing the Registrar within 7 days of the appointment. A Form LQ01 is required for each separate charge registered at Companies House over which the Receiver is appointed, whether the appointment is over part of the property or all the company’s assets. An administrative receiver must also publish notice of his or her appointment in the Gazette and in an appropriate newspaper.

When the administrative receiver, receiver or manager ceases to act they must notify the Registrar.

3. What must the receiver send to Companies House?

Within 3 months of appointment, an administrative receiver must make a report to:

the Registrar;
the company's creditors;
the holders of a floating charge; and
any trustees for secured creditors of the company.
The report must explain the circumstances of the appointment and the action the administrative receiver is taking.

The report must also include a summary of any 'statement of affairs' prepared for the receiver by the officers or employees of the company.

Statement of affairs

This is a summary of the company's assets, liabilities and creditors. The administrative receiver decides whether it is required and who should prepare it.

All receivers must send an account of receipts and payments for the first 12 months of receivership to the Registrar, and:

for administrative receivers, at 12-monthly intervals thereafter;
for receivers and managers, at 6-monthly intervals.


4. Which forms should be used?

The appropriate forms are:

Form title Number
Notice of the appointment of receiver or manager LQ01
Notice of ceasing to act as receiver or manager LQ02
Receiver or manager or administrative receiver's abstract of receipts and payment 3.6
Administrative receiver's report 3.10
Please note: Forms 3.6 and 3.10 are not available from Companies House. They can be obtained from company law stationers or by visiting the Insolvency Service website.

Please Note: Separate Forms LQ01 and LQ02 must be filed for each separate charge registered at Companies House over which a receiver is appointed and/or ceases to act, whether the appointment is over part of the property or all the company’s assets.