What is a receivership?
A receivership is a proceeding in which a receiver is appointed for an insolvent corporation, partnership, limited liability company or other business entity, or individual, to preserve and/or recover its assets for the benefit of the affected parties. New York law provides for appointment of a temporary receiver to preserve property that is the subject of a lawsuit prior to judgment where there is danger that the property will be removed from the state, lost, materially injured or destroyed. A receiver can also be appointed in connection with enforcement of a judgment in certain instances. For NY corporations, Article 12 of the NY Business Corporation law provides for appointment of a receiver to preserve assets or in connection with the dissolution of a corporation. Similar provisions exist under the laws of other jurisdictions. A receivership is a non-bankruptcy alternative that can be particularly useful to preserve the rights of creditor pending judgment.
Related Questions
- May the Receiver enter into settlements in connection with his efforts to recover receivership entity assets. Are these settlements subject to review?
- If a GST instalment payer goes into bankruptcy, liquidation or receivership before the end of the financial year, when is the Annual GST return due?
- What is Crystal Clear Receivership?
