Section 556 CAMA 2020
Section 556 Companies and Allied Matters Act is about Duties and powers of receivers and managers. It is under Chapter 19 (Receivers and managers, appointment of receivers and managers) of the Act.
(1) A person appointed as a receiver of any property of a company shall, subject to the rights of prior encumbrances, take possession of and protect the property, receive rents and profits and discharge all out-goings in respectthereof and realise the security for the benefit of those on whose behalf he is appointed, but unless he is an appointed manager, he does not have power tocarry on any business or undertaking.
(2) A person appointed manager of the whole or any part of the undertaking of a company shall manage the same with a view to the realisation of the security of those on whose behalf he is appointed.
(3) Without prejudice to subsection (1) or (2), where a receiver or manager is appointed for the whole or substantially the whole of a company’s property,the powers conferred on him by the debentures by virtue of which he was appointed are deemed to include (except they are inconsistent with any of the provisions of those debentures) the powers specified in the Eleventh Schedule to this Act.
(4) From the date of appointment of a receiver or manager, the powers of the directors or liquidators in a members’ voluntary winding-up to deal with the property or undertaking over which he is appointed, shall cease, unless the receiver or manager is discharged or the security is realised.
(5) If, on the appointment of a receiver or manager, the company is being wound up under the provision relating to creditors’ voluntary winding-up, or the property concerned is in the hands of some other officer of the Court, the liquidator or officer shall not be bound to relinquish control of such property to the receiver or manager except under the order of the Court.
