Legal Advice

5 Key Facts About Corporate Receivership

Whilst a business having the legal status of a corporation gives it many advantages and protections under commercial law, that does not mean it is entirely immune from problems and difficulties. One of the most common areas where disputes can arise concerning the finances of a corporation is how its assets are distributed to its shareholders and its secured creditors.

These decisions are usually made by the board, but if there is a disagreement between how the board wish to distribute a corporation’s assets, and its shareholders, then under commercial law a shareholder or group of shareholders can request that the corporation be placed into receivership.

What Is Corporate Receivership?

Receivership means that the legal status of a corporation has been changed by a court. Its effect is to place the assets of a corporation under court-appointed control to ensure assets are not misused or misappropriated by its directors. Receivership is often requested by shareholders or secured creditors when they believe that the assets of a company in which they own shares or are owed money are going to be sold off cheaply or to parties with which they do not agree.

Who Controls A Receivership?

Unsurprisingly the person who is appointed to be in control of receivership is called a receiver. They are appointed by a court via court order and this court order issues them with formal rights and obligations which they must perform during the period of receivership. Apart from them being obliged to use due diligence and act in good faith at all times, specific examples of the main rights and obligations of a receiver include:

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What To Do If You Are Falsely Accused Of A Crime

It is a reasonable assertion that the biggest injustice that can happen within criminal law is to be accused of something which you are completely innocent of. This can occur in different circumstances with either the police suspecting you of committing a crime and arresting you, or someone falsely, and possibly even maliciously, accusing you of a serious crime, which the police must act upon.

Stories of miscarriages of justice where innocent individuals have has their life destroyed and spent many years in prison can be extremely scary if you are innocent and being accused. In this article, we are going to give some basic guidelines as to what you should do if you are ever accused of a crime and are completely innocent.

Do Not Panic Or Behave Irrationally

This might seem obvious but when people are in situations that could have serious consequences, they do not always act irrationally. However, if you can remain calm and focussed should you ever be wrongly accused, it will help you. First, you must not do anything that really is a crime such as assault the police officer arresting you or you seek out your accuser to harass, threaten, or assault them.

Say Nothing Other Than What You Are Legally Required To Such As Your Name

You know you are innocent but there is little to be gained by trying to conduct your defence at this exact moment. Bear in mind the police will make notes or even record on camera what you say, so it is best to say nothing. Flippant remarks such as “Guilty” during your arrest will not be seen as a joke at your trial, so do not be your own worst enemy. Stay silent rather than give your accuser, the police, or the prosecution ammunition they can use against you.

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