The Company Law Review Group (CLRG) is a statutory expert body that reviews and advises me on company law matters. I set the work programme in consultation with the CLRG at least once in every two years under section 961 of the Companies Act 2014. The current CLRG work programme runs from the beginning of June 2016 to the end of May 2018 and work on these matters is ongoing. A copy of the work programme is available on the CLRG website (www.clrg.org).

The regulation of insolvency practitioners, including receivers, was evaluated by the CLRG in the CLRG First Report 2001. The Companies Act 2014 contains provisions in relation to the qualifications of liquidators and examiners.

Receivership is a remedy that derives from the courts of equity. The relevant law in relation to receivership is largely made up of rules which the courts have developed by applying general contract law and equitable principles. Section 433 of the Companies Act 2014 sets out the categories of persons who are disqualified to act as the receiver of a company e.g. an undischarged bankrupt; an employee or an officer of the company concerned or a person who was such within the period of 12 months before the date of the commencement of the receivership; and certain specified family members of an officer of the company concerned.

A receiver has specific statutory duties under section 439 which provides that:

- receivers must achieve the best price reasonably obtainable at the time of sale; and

- the receiver must not sell by private contract a non-cash asset of a company to a person who is or who, within three years prior to the date of appointment of the receiver, has been an officer of the company unless the Receiver has given 14 days’ notice of his or her intention to do so to all creditors of the company who are known to him or her or who have been intimated to him or her.

These statutory duties make it imperative that the receiver obtains expert legal and valuation advice in relation to the sale of property, consistent with the duty “to obtain the best price reasonably obtainable”. Breach of a receiver’s statutory duties may result in the receiver being held personally liable for any loss incurred.

The need for strengthening the regulation of receivers will be kept under review.