Section 191: Precedence among receivers

191. Precedence among receivers (1) Where there are 2 or more floating charges subsisting over the property of the company, a receiver may be appointed by virtue of every such charge. I14 – 111 [Issue 3] Insolvency Act (2) A receiver appointed by, or on the application of, the holder of a floating charge which has priority over any other floating charge by virtue of which a receiver has been appointed, has the power conferred on the receiver by this Act to the exclusion of any other receiver. (3) Where 2 or more floating charges rank equally with one another, and 2 or more receivers have been appointed by virtue of the charges, the receivers so appointed are deemed to have been appointed as joint receivers and shall act jointly unless the instrument of appointment or each of the respective instructions of appointment otherwise provides. (4) (a) Subject to subsection (5), the powers of a receiver appointed by, or on the application of, the holder of a floating charge are suspended by, and as from the date of, the appointment of a receiver by, or on the application of, the holder of a floating charge having priority over that charge to such an extent as may be necessary to enable the receiver second mentioned to exercise his powers under this Act. (b) Any power to suspend takes effect again when the prior floating charge ceases to attach to the property subject to the charge, or when the appointment of a receiver under the prior floating charge ceases in respect of that property, whichever first occurs. (5) The suspension of the powers of a receiver under subsection (4) does not have the effect of requiring him to release any part of the property of the company from his control until he receives from the receiver superseding him a valid indemnity, subject to the limit of the value of such part of the property as is subject to the charge by virtue of which he was appointed, in respect of any expenses, charges and liabilities he may have incurred in the performance of his functions as receiver. (6) The suspension of the powers of a receiver under subsection (4) shall not cause the floating charge by virtue of which he was appointed to cease to attach to the property in respect of which he was appointed. (7) Nothing in this section shall prevent the same receiver being appointed by virtue of 2 or more floating charges.