An appointment of a Receiver & Manager or Controller occurs when a secured party wishes to recover its exposure to the company through a formal insolvency appointment.

In such a situation, the Receiver takes control of the business operations and formulates the most appropriate strategies for the realisation of assets that are subject to the lenders security whilst minimising the lenders risk and generating the greatest return.

A director may make a direct approach to their financier and request such an appointment occur. Alternatively, the secured party may act to affect an appointment with only limited consultation with the directors.