Other than through the normal course of correspondence or
recovery activity, ICHU and local Revenue offices will not normally
be aware of the appointment of a receiver under a fixed charge
only.
Under a fixed charge the receiver has a responsibility to the
debenture holder only and usually becomes receiver or manager of a
property charged. The appointment is under the Law of Property Act
1925 or the terms of the fixed charge and a receiver’s powers
are restricted to dealing with the property and any income arising
from it if appointed under the provisions of the Law of Property
Act 1925 or the terms of the debenture if appointed under the terms
of that document.
If the receiver is appointed under the provisions of the Law
of Property Act 1925, the receiver is known as an LPA Receiver. It
is more common for receivers to be appointed under the terms of the
debenture.
A fixed charge receiver is not responsible for payment of
company debts or assuming the duties of an administrative receiver;
the company remains liable for payment. Unless a company is being
wound up (when a claim is lodged in the liquidation) the Revenue
should recover debts from the company in the normal way.
The receiver must submit accounts to the Registrar of
Companies within one month after the end of the first twelve months
of their receivership and every subsequent six months.
