A critical analysis of the duties and liabilities of a receiver under the insolvency act, 2011 Of Uganda

Abstract

It is increasingly clear that receivers play an important role in case of insolvency, in relation to prope1iy over receivership, to debtor, guarantor, all persons in whose interests they are appointed and third parties, however much as Insolvency and Mortgage Act sets out the liabilities of ~ct, as it is in practice today, stake holders under the Act lack enough knowledge as to the duties and liabilities of receivers, some tend to confuse them with those of tmstees thus affecting effective realization of the receivership process and in most cases receivership being not prefened by most debtors as one of the best options available to them in case of default in payment by creditor. Therefore this study seeks to examine the duties and liabilities of a receiver during the Insolvency of a company, the mode of appointment of a receiver and the fonnalities that are followed therein, how different statutes support the position of a receiver, loopholes in laws governing receivership in Uganda and make recommendations thereafter.