Section 197: General duties of receiver(cid:3)
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
197. General duties of receiver(cid:3)
(1) A receiver shall exercise his powers in good faith.(cid:3)
(2) A receiver shall exercise his powers in a manner which he believes on
reasonable grounds to be in the interests of the person in whose interest he
was appointed.(cid:3)
(3) A receiver shall, while acting in accordance with subsections (1) and
(2), exercise his powers with reasonable regard to the interests of—
(a) the chargor;(cid:3)
(b) persons claiming, through the chargor, interests in the property
in the receivership;(cid:3)
(c) unsecured creditors of the chargor; and(cid:3)
(d) sureties who may be called upon to fulfil the obligations of the
chargor.(cid:3)
(4) A receiver shall not be bound to act in accordance with the directions
of the person appointing him and any such failure shall not be regarded as
being in breach of the duty referred to in subsection (2).(cid:3)
(5) (a) A receiver who exercises a power of sale of property in a receivership shall owe a duty to the chargor to obtain the best price reasonably
obtainable as at the time of sale.
(b) Notwithstanding any other enactment or anything contained in
the instrument by or under which a receiver is appointed—
(i) it shall not be a defence to proceedings against a receiver for a
breach of the duty imposed by paragraph (a) that the receiver
was acting as the chargor’s agent or under a power of attorney
from the chargor; and
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(ii) a receiver shall not be entitled to compensation or indemnity
from the property in receivership or the chargor in respect of any
liability incurred by the receiver arising from a breach of the duty
imposed by paragraph (a).
(6) A receiver shall keep money relating to the property in receivership
separate from other money received in the course of, but not relating to, the
receivership and from other money held by or under the control of the receiver.
(7) (a) A receiver shall, at all times, keep accounting records in the English or French language, that correctly record and explain all receipts, expenditure and other transactions relating to the property in receivership.
(b) The accounting records shall be retained by the receiver for not
less than 6 years after the receivership ends.
(c) —
[S. 197 amended by s. 11 (k) of Act 4 of 2017 w.e.f. 20 May 2017.]