A receiver may be appointed to take control of a company’s assets to ensure the payment of secured creditors

If a company is financially distressed, a secured creditor or the Court may put it into receivership and appoint a Receiver. A Receiver’s role is to receive and realise the company’s assets and then distribute the proceeds to the secured creditors.

Receivers are generally appointed under the terms of a security document, such as a General Security Agreement.

A Receiver and Manager has additional powers – which is to manage the distressed business – and it is usual for them to be appointed to a company at the same time as a Voluntary Administrator.

A Receiver and Manager acts for a secured creditor, while a Voluntary Administrator looks after the interests of unsecured creditors.

The Court may appoint a Receiver or Receiver and Manager

The Court may appoint a Receiver or Receiver and Manager – usually when there is a partnership dispute and an independent party is needed to resolve it. This situation often requires a detailed examination of the financial records of the partnership and the disposal of the partnership’s assets.

Our key responsibility as Receivers and Managers of a company

In simple terms – when acting as Receivers or Receivers and Managers, our key responsibilities are to collect and sell assets in order to repay what is owed to secured creditors.

The Receiver, or Receiver and Manager’s role includes:

  • Undertaking an immediate assessment of the assets available for realisation and settlement of the debt owing to the secured creditor.
  • Reporting back to the secured creditor on a regular basis the results of investigations and details of current trading.
  • Realisation of the secured assets either individually or by sale of a business as a going concern.
  • Payment of the secured debt and any other debts with preferential entitlement, such as employee entitlements.

WAIS has wide-ranging experience acting as Receivers, or Receivers and Managers, for financial institutions and other secured creditors and also with court appointments to resolve partnership disputes. Get in touch with our team today for professional advice. 

Are you a secured creditor? Message our experts today for assistance

Summary of the receivership process



Receiver is appointed by a secured creditor. A secured creditor holds a security interest, such as a mortgage, in some or all the company’s assets, to secure a debt owed by the company.


Take control of assets

Receivers, or Receivers and Managers take control of some or all of its assets to ensure the payment of secured creditors.


Sell assets & repay secured creditors

Collect and sell assets in order to repay what is owed to secured creditors. Any remaining funds are distributed in the order required by law.


Report to ASIC

Report to ASIC any possible offences or other irregular matters observed.

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