Receiver Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Receiver, written in plain English, along with examples of how it is used.
What is Receiver?
(n) A receiver is the person appointed by a judge to take charge of the property, business etc of another person, to run the business, collect the receivables etc with the purpose of fulfilling the objective for which such receivers are appointed
History and Meaning of Receiver
A receiver is a legal term with roots traced back to English common law, particularly in the Chancery courts. The primary function of a receiver is to take control of and manage assets or property that are at the center of a legal dispute. Over time the definition of the term has expanded to include receivers appointed by courts to oversee the affairs of a company or corporation that is in financial distress or that is being restructured.
Receiverships have become an important tool for companies and creditors to ensure that their rights and interests are protected in situations where a company is in financial difficulty or is facing significant legal challenges. Receivers are often appointed to safeguard assets and ensure that they are not sold or exploited in a way that harms creditor interests. They are also responsible for managing and restructuring the company or business to maximize its value.
Examples of Receiver
In a legal dispute between two parties, a judge appoints a receiver to take charge of the assets under contention, including properties, bank accounts, or stocks to prevent further harm or dissipation until the dispute is resolved.
A company in financial distress may invite a receiver to take charge of its assets to restructure its management and operations in a bid to bounce back.
A court may appoint a receiver to oversee the sale of foreclosed property, like a house, in order to repay debts.
Legal Terms Similar to Receiver
- Bankruptcy trustee - A court-appointed official responsible for managing the restructuring of a bankrupt company.
- Conservator - A court-appointed official given the power and responsibility of managing the affairs and assets of an individual who is unable to take care of themselves or their assets due to illness or disability.
- Executor - A person appointed by an individual in their will to manage their estate after their death.
- Trustee - A person or corporation appointed to manage a trust's assets and ensure that they are distributed in accordance with the terms of the trust.