Define: Receivership

Receivership is a legal process in which a court-appointed individual, known as a receiver, is granted authority to take possession and control of property, assets, or business operations in order to preserve, protect, or manage them for the benefit of creditors, shareholders, or other interested parties. Receivership may be initiated in various situations, such as bankruptcy proceedings, foreclosure actions, business reorganisations, or the dissolution of partnerships or corporations. The receiver is tasked with carrying out specific duties and responsibilities as directed by the court, which may include managing finances, selling assets, overseeing operations, or distributing proceeds to creditors. Receivership aims to ensure the orderly and equitable resolution of financial disputes or insolvency proceedings while safeguarding the interests of stakeholders and maximising the value of the assets involved.

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This glossary post was last updated: 29th March 2024.