Section 478 CAMA 2020

Section 478 Companies and Allied Matters Act is about Vacation of office by receiver. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) When an administration order takes effect in respect of acompany, a receiver of the company appointed by a holder of a floating chargeor by the Court shall vacate office.

(2) Without prejudice to priority rules under this Act, where a company is in administration, any receiver of part of the company’s property appointed by a secured creditor shall vacate office if the administrator requires him to.

(3) Where a receiver vacates office under this section—

(a) his remuneration shall be charged on and paid out of any property of the company which was in his custody or under his control immediately before he vacated office ; and

(b) he need not take any further steps under section 561 or 562.

(4) In the application of subsection (3) (a)—

(a) “remuneration” includes expenses properly incurred and any indemnity to which the receiver is entitled out of the assets of the company ;

(b) the charge imposed takes priority over security held by the person by whom or on whose behalf the receiver was appointed ; and