A receiver can be appointed to take control of assets or a business pending or following judgment, with duties defined by the appointing court. It is a powerful but costly tool.
Receiverships may suit operating companies, scattered assets or a need for neutral management. The aim is often to prevent dissipation while a claim proceeds.
Applicants typically must justify necessity and address funding for the receiver’s work. Underfunded receiverships stall.
Consider proportionate alternatives before assuming a receiver is required. Targeted freezes, disclosure or negotiated security may achieve similar preservation at lower cost.
Disclaimer: This article provides general information only. It is not legal advice and does not guarantee recovery in any matter.