152. Appointment and powers of receivers and administrative receivers
Past version: effective from 14/06/2015 - 13/06/2015
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(1) Where a Company grants a person powers contained in an instrument to appoint an Office-holder to get in and sell any part of its property and to apply the proceeds in reduction of a debt due to that other person, the Office-holder, once appointed, shall be a "receiver" and shall be subject to these Regulations in his performance of that function.
(2) A receiver may be appointed under, and has all of the powers conferred upon him by, such instrument, save as provided in these Regulations.
(3) In these Regulations, "administrative receiver" means a receiver appointed under powers contained in an instrument which constitutes a qualifying charge, in respect of the property of a Company which consists of the whole or substantially the whole of the property of that Company, or who would be such a receiver but for the appointment of some other person as the receiver of part of that Company's property. An administrative receiver has, in addition to the powers contained in the instrument appointing him in accordance with subsection (1), the powers set out in Schedule 3 (Powers of Administrative Receiver).
(4) In Schedule 3 (Powers of Administrative Receiver), references to the property of the Company are to the property of which the administrative receiver is, but for the appointment of some other person as the receiver of part of the Company's property, the administrative receiver.
(5) The document appointing a person as a receiver of a Company's property —
(a) must fix the amount to be paid by way of remuneration to the person who has been appointed receiver or provide the basis on which the amount of remuneration will be determined; and
(b) is of no effect until it is accepted by the receiver in writing.
(6) A receiver or administrative receiver appointed over property of a Company in the Abu Dhabi Global Market must be a person who is licensed as an insolvency practitioner under the Commercial Licensing Regulations 2015.
(7) Where the appointment of a person as the receiver of a Company's property under powers contained in an instrument is discovered to be invalid (whether by virtue of the invalidity of the instrument or otherwise) the Court may order the person by whom or on whose behalf the appointment was made to indemnify the person appointed against any liability which arises solely by reason of the invalidity of the appointment.
(8) The holder of a qualifying charge in respect of a Company's property may not appoint an administrative receiver of the Company except in the following circumstances —
(a) in pursuance of an agreement which is or forms part of a capital market arrangement provided that —
(i) a party incurs or, when the agreement was entered into, was expected to incur under the arrangement a debt of at least $50 million; and
(ii) such arrangement involves the issue of a capital market investment; or
(b) in relation to a project company of a project which includes step-in rights and is a financed project; or
(c) in relation to such additional circumstances as the Board may by rules designate from time to time.