Companies Act 2014 section 558M

Relevant court's powers where receiver or provisional liquidator previously appointed

Section 558M deals with the court's powers to manage conflicts that arise when a process adviser is appointed to a small or micro company under the rescue process, but a receiver or provisional liquidator is already in place.

• Where a receiver has been appointed for fewer than 3 continuous working days at the date of the resolution, the company or process adviser may apply to the court for directions on how the process adviser's appointment affects the receiver's role
• The court may order the receiver to cease acting entirely, to act only in respect of specified assets, or to hand over all records and provide full details of dealings with the company's property to the process adviser
• Where a provisional liquidator is already in place, similar applications can be made to the High Court, which may order the provisional liquidator to cease acting and to hand over records and details of dealings to the process adviser
• The court must not curtail or remove the role of a receiver or provisional liquidator unless it is satisfied there is a reasonable prospect of the company surviving as a going concern, and creditors must be given notice of any application

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