Role of the OR
The OR’s primary role is to investigate the debtor’s or director’s actions and take full control of the assets.
An Official Receiver (OR) is appointed by the court as Trustee in bankruptcy of an individual. An OR may also be appointed by the court as Liquidator of an insolvent company.
Responsibilities of the OR
The OR has several key responsibilities, including investigating whether any funds are available for distribution to creditors. If funds are found, the OR ensures they are properly allocated. The OR also examines financial documents, such as financial statements and bank records, to determine the cause of the bankruptcy or liquidation. For a liquidation, the OR is also required to file a director’s conduct report on every director that has acted as a director of the company for the three years leading up to the liquidation. Additionally, the OR ensures that the debtor or director fully cooperates throughout the entire process.
As a neutral party between the creditor and the debtor, the OR ensures that the bankruptcy r liquidation process runs smoothly and in accordance with the law.
Should creditors require an independent Trustee or Liquidator be replace the OR, then creditors can request this appointment be made if they have sufficient creditor support.
