The appointment of a receiver is not normally a succession. The
instrument under which the receiver is appointed generally provides
that he or she is deemed to be the agent of the borrower (the
trader) and not of the lender, even though it is the lender who
appoints the receiver. So the trade continues to be carried on in
law by the same person. The appointment of a liquidator of a
company is not a succession (although it will often mark the
permanent discontinuance of a trade (
BIM70570)) since the liquidator merely
replaces the directors as the person empowered to take decisions
binding the company.
But there is a change in the beneficial ownership of assets
when a person becomes bankrupt. Accordingly there is a succession
when a trader becomes bankrupt and his or her trade is carried on
by the Official Receiver or a trustee in bankruptcy.
