When a Receiver & Manager is appointed to a company, the receiver is an agent for the corporation. Accordingly, any acts that he/she undertakes whilst this agency exists can be undertaken on behalf of company rather than in his/her own right. However, once a liquidator is appointed this agency ceases. In this instance, the Receiver & Manager is then dealing with parties in his own capacity (as agent of the secured creditor).
A Receiver & Manager is able to retain his agency with the company over which he is appointed if, pursuant to Section 420C of the Corps Act, he obtains the consent of the Liquidator (or the Court) to carry on the company’s business either generally or as otherwise specified in the approval.
The ability of the Receiver & Manager to act as agent for the Company is not something that should be easily dismissed as irrelevant. Consideration as to the implications of this loss of agency should always be considered