IN RECEIVERSHIP Meaning and
Definition
-
In receivership refers to a legal status wherein a business, organization, or individual is put under the control and administration of a receiver appointed by a court or a creditor. When a company is unable to pay its debts or is facing financial distress, the court may appoint a receiver to take possession and manage its assets. This appointment is typically made at the request of a creditor seeking repayment of their debts. The receiver assumes the responsibility of assessing and preserving the company's assets, as well as distributing them to creditors in accordance with the priorities set by the court or applicable laws.
Being in receivership does not necessarily mean that the company will be liquidated, but rather, it provides a structured environment to maximize the recovery of debts owed to various parties involved. The receiver acts as an impartial third party who takes charge of the company's operations, making decisions on behalf of the business and reporting to the court or relevant stakeholders.
During receivership, the receiver usually has the authority to take actions, such as selling assets, terminating employees, or entering into contracts on behalf of the company. This legal status aims to protect the interests of creditors and facilitate an orderly resolution of the financial issues faced by the entity in receivership.
Overall, being in receivership signifies the transfer of control and management of a business or individual's affairs to an independent receiver, with the primary goal of addressing financial troubles and facilitating the equitable resolution of debts owed.
Common Misspellings for IN RECEIVERSHIP
- un receivership
- jn receivership
- kn receivership
- on receivership
- 9n receivership
- 8n receivership
- ib receivership
- im receivership
- ij receivership
- ih receivership
- in eeceivership
- in deceivership
- in feceivership
- in teceivership
- in 5eceivership
- in 4eceivership
- in rwceivership
- in rsceivership
- in rdceivership
- in rrceivership
Etymology of IN RECEIVERSHIP
The term "in receivership" has its roots in the legal and financial domain.
The word "receiver" dates back to the 14th century, derived from the verb "receive" which originated from the Old French word "receivre". The receiver, in a financial or legal context, refers to an appointed person or entity who takes charge of managing the affairs, assets, and finances of a company or individual when they are in a state of financial distress or insolvency.
The term "in receivership" is specifically linked to the legal concept of receivership. It emerged in England during the 16th century as a mechanism to deal with insolvent debtors. It involves the appointment of a receiver by a court or another authorized entity to protect and manage the assets of a company or individual during insolvency proceedings.
Infographic
Add the infographic to your website:
