Liabilities of Receivers/Managers in the Realisation and Preservation of Company Security in Nigeria

Abstract

This article basically seeks to examine the liability of Receiver/Manager in the realization and preservation of company security in Nigeria. They are various statutes which have painstakingly pointed out the circumstances in which a receiver may incur liabilities. Example abounds such as the Factories Acts, the Food and Drugs Acts, Capital Gains Tax, Value Added Tax etc. The receiver or manager pledges his own credit and as such is personally responsible for his acts and defaults. This position remains largely so until there is strong reason to the contrary. Thus, Liabilities of the receivers ranges from liability to account on contract, trespass, wrongful interference, negligence, personal liability etc. The Company and Allied Matters Act, 1990, and a plethora of authorities ranging from case laws have shown that the receiver has a considerable degree of duties, breach of which attracts sanctions but either by way of fines or damages. Thus, in the discharge of these functions, the receiver is enjoined not only to act in good faith but he must also exercise due care and diligence.