Appointment of a receiver and the functions of the courts in nigeria

Oftentimes, companies faceinternal managerial disputes, or financial stress and appoint a receiver to arrest the deterioration of operations, dispose of assets of the company and settle creditors. This paper seeks to elucidate the purposes that may influence the appointment of a receiver and the various types of appointment of receivers and particularly the functions of the courts in this material particular. Also, the legal status, powers, duties and liabilities of a receiver are analysed for guidance of judges, law teachers, insolvency practitioners and other stakeholders in the receivership process. Some other issues considered in this paper are the scope of the powers of directors of companies and the effects of previous and subsequent contracts, exclusion of the statute of limitation, challenges to speedy trials and the need for up skilling the knowledge levels in the judiciary. Furthermore, the general business community and lawyers seem to confuse a liquidator with a receiver resulting in conflicting case law on the subject hence discussions on the issues have been directed especially on the consequences of appointments made.