What does receivership mean?
Receivership refers to a situation in which a person or organization, known as a receiver, is appointed by a court to take control of a business or property, often due to financial difficulties or insolvency. This can occur when a company is unable to pay its debts or is facing financial crisis. The receiver's role is to manage the business or property, often with the goal of selling off assets or restructuring the company. Receivership can have significant consequences for the company, its creditors, and its stakeholders. It is a serious step that is typically taken when other options have been exhausted. Understanding receivership is important for businesses, investors, and individuals who may be affected by this process.
nounA receivership is a situation in which a person or organization, known as a receiver, is appointed by a court to take control of a business or property, often due to financial difficulties or insolvency.
- A legal process where a receiver is appointed to manage a business or property
- A state of being under the control of a receiver
"The company was placed in receivership after it was unable to pay its debts."
"The bank was placed in receivership after it was unable to recover from the financial crisis."
"The company's assets were sold off after it was placed in receivership."
The plural form is used when referring to multiple instances of receivership.
"The company had multiple receiverships throughout its history."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of receivership
The term 'receivership' originated in the 15th century, derived from the Old French 'receveur', meaning 'receiver', and the suffix '-ship', indicating a state or condition. The concept of receivership has evolved over time, influenced by English common law and equitable principles.
How receivership is actually used
Receivership is often used in a financial or legal context, and can have a negative connotation, implying financial difficulties or failure.