Article 3 Civil recovery management receivers

After article 150 of the 2005 Order (property freezing orders: restrictions on proceedings and remedies), insert—

“Receivers in connection with property freezing orders

150A.

(1)

Paragraph (2) applies if—

(a)

the High Court makes a property freezing order on an application by an enforcement authority, and

(b)

the authority applies to the court to proceed under paragraph (2) (whether as part of the application for the property freezing order or at any time afterwards).

(2)

The High Court may by order appoint a receiver in respect of any property to which the property freezing order applies.

(3)

An application for an order under this article may be made without notice if the circumstances are such that notice of the application would prejudice any right of the enforcement authority to obtain a recovery order in respect of any property.

(4)

In its application for an order under this article, the enforcement authority must nominate a suitably qualified person for appointment as a receiver.

(5)

Such a person may be a member of staff of the enforcement authority.

(6)

The enforcement authority may apply a sum received by it under article 191(2) in making payment of the remuneration and expenses of a receiver appointed under this article.

(7)

Paragraph (6) does not apply in relation to the remuneration of the receiver if he is a member of the staff of the enforcement authority (but it does apply in relation to such remuneration if the receiver is a person providing services under arrangements made by the enforcement authority).

Powers of receivers appointed under article 150A

150B.

(1)

If the High Court appoints a receiver under article 150A on an application by an enforcement authority, the court may act under this article on the application of the authority.

(2)

The court may by order authorise or require the receiver—

(a)

to exercise any of the powers mentioned in paragraph 5 of Schedule 2 (management powers) in relation to any property in respect of which the receiver is appointed,

(b)

to take any other steps the court thinks appropriate in connection with the management of any such property (including securing the detention, custody or preservation of the property in order to manage it).

(3)

The court may by order require any person in respect of whose property the receiver is appointed—

(a)

to bring the property to a place (in England and Wales, or as the case may be, Northern Ireland) specified by the receiver or to place it in the custody of the receiver (if, in either case, he is able to do so),

(b)

to do anything he is reasonably required to do by the receiver for the preservation of the property.

(4)

The court may by order require any person in respect of whose property the receiver is appointed to bring any documents relating to the property which are in his possession or control to a place (in England and Wales or, as the case may be, Northern Ireland) specified by the receiver or to place them in the custody of the receiver.

(5)

In paragraph (4), “document” means anything in which information of any description is recorded.

(6)

Any prohibition on dealing with property imposed by a property freezing order does not prevent a person from complying with any requirements imposed by virtue of this article.

(7)

If—

(a)

the receiver deals with any property which is not property in respect of which he is appointed under article 150A, and

(b)

at the time he deals with the property he believes on reasonable grounds that he is entitled to do so by virtue of his appointment,

the receiver is not liable to any person in respect of any loss or damage resulting from his dealing with the property except so far as the loss or damage is caused by his negligence.

Supervision of article 150A receiver and variations

150C.

(1)

Any of the following persons may at any time apply to the High Court for directions as to the exercise of the functions of a receiver appointed under article 150A–

(a)

the receiver,

(b)

any party to the proceedings for the appointment of the receiver or the property freezing order concerned,

(c)

any person affected by any action taken by the receiver,

(d)

any person who may be affected by any action proposed to be taken by the receiver.

(2)

Before giving any directions under paragraph (1), the court must give an opportunity to be heard to—

(a)

the receiver,

(b)

the parties to the proceedings for the appointment of the receiver and for the property freezing order concerned,

(c)

any person who may be interested in the application under paragraph (1).

(3)

The court may at any time vary or set aside the appointment of a receiver under article 150A, any order under article 150B or any directions under this article.

(4)

Before exercising any power under paragraph (3), the court must give an opportunity to be heard to—

(a)

the receiver,

(b)

the parties to the proceedings for the appointment of the receiver, for the order under article 150B or, as the case may be, for the directions under this article,

(c)

the parties to the proceedings for the property freezing order concerned,

(d)

any person who may be affected by the court’s decision.”.

In articles 184(4)(b) and 188(7)(b) of the 2005 Order (recovery orders and consent orders: recovery of costs of pension scheme trustees or managers) after “enforcement authority,” insert “receiver appointed under article 150A,”.