Mr George Foulkes (Minister of State, Scottish Office; Carrick, Cumnock & Doon Valley, Labour/Co-operative)

This is a group of eight minor amendments concerning management receivers, directors' receivers and enforcement receivers. Amendment Nos. 39, 43 and 46 delete the power of the court to impose conditions or exceptions when it confers the power to take possession of property upon the receiver. However, amendments Nos. 42, 44 and 47 give the court the wider discretion to impose conditions or exceptions when it confers any power on the receiver under clauses 49, 51 and 53.

Amendment Nos. 40 and 41 relate to the ability of a management receiver to pay his or her remuneration and expenses out of the managed property. Amendment No. 40 is purely technical. The receiver is to be permitted to meet his expenses out of the property that he is managing. However, the power to sell assets might be too narrow if, for example, the receiver wished to take money from a bank account. I am sure the Committee—particularly the hon. Member for Beaconsfield—will understand that the word ``realised'' has a broader meaning than the word ``sell'' and will give the receiver more latitude.

Amendment 41 is substantive. It makes clear that before a receiver is allowed to draw down any of the managed assets for his or her remuneration and expenses, third parties must be given the right to be heard. In practice, a management receiver is never allowed to draw down assets that may be subject to a third party claim. The amendment gives explicit statutory recognition to the principle.

See this speech in context