K. Termination of the Receivership

• Author: Roderick J. Wood
• Profession: Faculty of Law. University of Alberta
• Pages: 492-493

Page 492

A receivership ordinarily comes to an end when all the realizable assets have been disposed of and the proceeds have been distributed to parties according to their priority ranking. In the case of a court-appointed receiver, the receiver will pass its final accounts and seek a discharge. Although there is not a formal discharge of the receiver in the case of

Page 493

a private receivership, the receiver is under an obligation to render a final account of the administration⁸⁷and interested parties may apply to court to have the receiver’s fees reviewed.⁸⁸The appointment of a receiver can also come to an end before the duties of the receiver have been completed. This may occur through death, resignation of the receiver, or removal. The secured creditor who appointed a privately appointed receiver has the power to dismiss the receiver. Legislation has given courts the power to remove and replace a privately appointed receiver.⁸⁹Only the court that appointed a court-appointed receiver may remove the receiver from office. Creditors will typically apply to have a court-appointed receiver removed and replaced when they think that the receiver is in a conflict of interest or has failed to consider impartially the interests of all of the claimants.⁹⁰

FURTHER READINGS

Bennett, f., Bennett on Creditors’ and Debtors’ Rights and Remedies, 5th ed. (Toronto: Carswell, 2006) c. 14

---, Bennett on Receiverships, 2d ed. (Toronto: Carswell, 1998) c. 2

BUCKWOLD, t., & R. WOOD, "Priorities" in S. Ben-Ishai & A Duggan, eds., Canadian Bankruptcy and Insolvency Law: Bill C-55, Statute c. 47 and Beyond (Markham, ON: LEXISNEXIS Canada, 2007) 101

CARHART, J., "Appointing a Receiver and Seizing Equipment" (2005) 22 Nat’l Insolv. Rev. 53

CUMING, r., C. WALSH, & R. WOOD, Personal Property Security Law (Toronto: Irwin Law, 2005) c. 13

MCELCHERAN, k., Commercial Insolvency in Canada (Markham, ON:

LEXISNEXIS Butterworths, 2005) c. 3

[87] BIA, above note 11, s. 246(3).

[88] Ibid., s. 248(2); CBCA, above note 30, s. 100; Ont. PPSA, above note 57, s. 60(2).

[89] See, for example, Ont. PPSA, ibid., s. 60(2)(a); Alta. PPSA, above note 1, s...