BL – Nov 2023 – L1 – SA – Q1 – Business Ethics and Corporate Governance

This question asks about the duty of a receiver in a corporate setting.

Question

Which of the following is NOT a duty of a receiver in a company?
A. Taking possession of company property
B. Managing company business
C. Discharging all outgoings
D. Protecting company properties
E. Realising securities for the benefit of shareholders

Answer

B
Explanation:
A receiver’s role is primarily focused on asset management and debt repayment. They are not responsible for managing the day-to-day operations of the company, as this is typically outside their scope of duties. Their responsibility is to realize the value of the company’s assets for the benefit of creditors, making option B the correct answer.

Tags: Business Law, Company Management, Corporate Law, Receivership
Level: Level 1

Topic: Business Ethics and Corporate Governance
Series: NOV 2023

Uploader: Theophilus