March 2001
69.23 To mortgagee
The receiver’s primary duty is to deal with the assets under his control and realise them for the benefit of his appointor. All other powers or duties are secondary to that primary obligation (In Re: Downsview Nominees Ltd v First City Corporation Ltd [1993] BCC 46).
69.24 To prior mortgagees
The receiver must account to any prior mortgagee for all sums that become due under that prior mortgage.
69.25 To the mortgagor
The receiver owes a duty to the mortgagor to use reasonable skill and care in obtaining a proper price for the property and to manage the property with due diligence (In Re: Medforth v Blake [1999] 3 All E.R. 97).
69.26 To guarantors
The duties of a receiver have been held to extend to the guarantors of a debt due to a debenture holder (Standard Chartered Bank Ltd v Walker [1982] 1 WLR 1410, CA). This duty does not extend to the general body of creditors.
69.27 Delivery of accounts
A receiver of a company’s property must deliver receipts and payments accounts to the Registrar of Companies for the period of twelve months from his appointment and for every subsequent six-month period. The accounts shall be delivered within one month (or such longer period as the registrar may allow) after the expiration of 12 months from the date of his appointment, and of every subsequent period of 6 months, and also within one month after he ceases to act as receiver or manager.
Notes: [s38]69.28 Notification of appointment
When a receiver or manager of the property of a company has been appointed, every invoice, order for goods or business letter issued by or on behalf of the company or the receiver or manager or the liquidator of the company, being a document on or in which the company's name appears, shall contain a statement that a receiver or manager has been appointed.
Notes: [s39]
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