Companies Act 2014 section 428

Appointment of receiver under powers contained in instrument: construction of such reference

Section 428 clarifies how references to the appointment of a receiver under powers contained in an instrument should be interpreted throughout Part 8 of the Act.

• Where Part 8 refers to "the appointment of a receiver under powers contained in any instrument", this phrase has a broader meaning than it might first appear.
• The phrase covers not only express powers set out in a document (such as a debenture or mortgage deed), but also powers that are implied by any enactment or statute.
• This means that if legislation automatically grants a power to appoint a receiver in certain circumstances, an appointment made under such implied powers is treated in the same way as one made under powers expressly written into an instrument.
• The definition of "receiver" itself is found separately in section 2 of the Act, which provides a general definition applicable throughout the entire legislation.