Section 557 CAMA 2020

Section 557 Companies and Allied Matters Act is about Liabilities of receivers and managers on contracts. It is under Chapter 19 (Receivers and managers, appointment of receivers and managers) of the Act.

(1) A receiver or manager of any property or undertaking of a company is personally liable on any contract entered into by him except in so far as the contract otherwise expressly provides.

(2) As regards contracts entered into by a receiver or manager in the proper performance of his functions, such receiver or manager is, subject to the rights of any prior encumbrance, entitled to an indemnity in respect of liability thereon out of the property over which he has been appointed to act asa receiver or manager.

(3) A receiver or manager appointed out of Court under a power contained in any instrument is also entitled, as regards contracts entered into by him with the express or implied authority of those appointing him, to an indemnity in respect of liability thereon from those appointing him to the extent to which heis unable to recover in accordance with subsection (2).