Section 226Part 14 — Segregated Portfolio Companies
Administration of receivership orders
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The receiver of a segregated portfolio —
may do all such things as may be necessary for the purposes set out in section 224(3); and
shall have all the functions and powers of the directors in respect of the business and segregated portfolio assets of or attributable to the segregated portfolio.
The receiver may, at any time, apply to the Court —
for directions as to the extent or exercise of any function or power;
for the receivership order to be discharged or varied; or
for an order as to any matter acting in the course of that person’s receivership.
In exercising that person’s functions and powers the receiver shall be deemed to act as the agent of the s egregated portfolio company, and shall not incur personal liability except to the extent that that person is fraudulent, reckless, negligent, or acts in bad faith.
Any person dealing with the receiver in good faith is not concerned to enquire whether t he receiver is acting within that person’s powers.
When an application has been made for, and during the period of operation of, a receivership order, no suit, action or other proceedings shall be instituted against the segregated portfolio company in relation to the segregated portfolio in respect of which the receivership order was made except by leave of the Court, which may be conditional or unconditional.
During the period of operation of a receivership order —
the functions and powers of t he directors shall cease in respect of the business of or attributable to, and the segregated portfolio assets of or attributable to, the segregated portfolio in respect of which the order was made; and
the receiver of the segregated portfolio shall be entitled to be present at all meetings of the segregated portfolio company and to vote at such meetings, as if that person were a director of the segregated portfolio company, in respect of the general assets of the company, unless there are no creditors in respect of that segregated portfolio entitled to have recourse to the company ’ s general assets.