Companies Act 2014 section 438

Power of receiver and certain others to apply to court for directions and receiver's liability on contracts

Section 438 deals with who may apply to court for directions regarding a receiver's functions, and sets out the rules on a receiver's personal liability on contracts and where a charge turns out to be ineffective.

• The receiver, company officers, members, creditors (owed more than €13,000 in aggregate), at least half the permanent employees, a liquidator or a contributory may apply to court for directions on the receiver's performance of functions
• A receiver is personally liable on any contract entered into while carrying out their role, unless the contract expressly excludes personal liability, but the receiver is entitled to an indemnity from the company's assets in respect of that liability
• Applicants other than the receiver must provide evidence that they are being unfairly prejudiced by any actual or proposed act or omission of the receiver
• Where a charge under which the receiver was appointed turns out to be ineffective, the court may relieve the receiver of personal liability and transfer that liability to the person who appointed them