In
law,
receivership is the situation in which an institution or enterprise is being held by a
receiver, a person "placed in the custodial responsibility for the
property of others, including tangible and intangible
assets and rights", especially in cases where a company cannot meet its financial obligations or enters
bankruptcy. The receivership remedy is an equitable remedy that emerged in the English
Chancery courts, where receivers were appointed to protect real property. Receiverships are also a remedy of last resort in litigation involving the conduct of executive agencies that fail to comply with constitutional or statutory obligations to populations that rely on those agencies for their basic
human rights. There are several types of receiver appointments:
- Appointed by a government regulator
- Privately appointed receiver
- Court-appointed receiver