MORTGAGES, DEBENTURES AND RECEIVERS 204 
is concerned. As a rule, a receiver has express power given 
him to take possession of all or any of the property subject 
to the charge, to carry on the company’s business, to sell, 
and to compromise. But he cannot carry on the business 
unless he is expressly empowered to do so. 
He will accordingly enter into possession, and, if so author- 
ised, carry on the business, collect the assets, and, if necessary 
sell all or any of them. Out of the proceeds he will pay the 
expenses of the business, interest on prior charges, preferential 
debts and his own remuneration, after which he will pay to the 
debenture holders the interest due to them. If, in order to 
pay off the principal due on the debentures, he sells, any 
surplus must be paid to the company, as also any surplus 
income if there is no sale. 
If the company is in liquidation, the Court may, on the 
application of the liquidator, fix the remuneration of the 
receiver or manager [s. 309]. 
A motion to the Court to appoint a receiver and manager is 
ordinarily the next step after the issue of a writ in a deben- 
ture holder's action, and a receiver and, if there is a going 
business, a manager will be appointed, if either principal 
or interest is in arrear, or if the security is in jeopardy, e.g. 
by a threatened winding up, or by execution having been 
issued on a judgment against the company; or if the assets 
are in danger owing to disputes between the directors [Stanfield 
v. Gibbon (1925), W.N. 11]. 
When the Court appoints a receiver it assumes the pro- 
rection of the property which constitutes the security of the 
debenture holders, and holds it for their benefit. A receiver 
appointed by the Court, and a manager appointed by the 
Court, are officers of the Court, and any interference with 
their possession or acts 1s contempt of Court. They are 
neither agents of the company, nor of the debenture holders. 
They are under the directions of the Court; and since the 
Court cannot be liable as their principals, it follows that they 
are primd facie personally liable, although they have a right 
of indemnity against the assets [Burt v. Bull (1895), ~ C 3. 
276; Strapp v. Bull (1895), 2 Ch. 1]. 
A receiver appointed by the Court must give security tc 
account for what he receives. He is entitled to a proper 
salary or allowance for the performance of his duties. 
His appointment must be notified to the Registrar by 
the person at whose instance it was obtained within seven 
days from the date of the order appointing him [s. 86 (1)]. 
The usual order directs an enquiry as to the preferential pay- 
ments to be made under s. 78 of the Act and provides for the 
Appointed by 
the Court.