Business receivership in Newport Beach California is a special type of bankruptcy. With business receivership in Newport Beach California, a corporation may be appointed a receiver. The receiver handles the daily operations of the company. However, what exactly does this mean? What, specifically, is the receiver allowed to do on behalf of the corporation?
First, the receiver takes over the corporation. The receiver has a fiduciary role, which means that it involves trust. After all, the receiver is essentially taking possession of the corporation, so the receiver must act carefully to benefit the corporation as much as possible.
If the corporation is going to be liquidated, the receiver must first identify all of the corporation’s assets. These may include cash, real estate, and other types of investments. The receiver will take over these assets, and the corporation will not be able to sell them or take action that depletes their value.
Next, the receiver will have to have the assets valued properly. Hiring an appraiser may be necessary for this step to obtain the fair market value of each item.
After gaining an understanding of the financial position of the corporation, the receiver will then have to decide how the matter should proceed. For example, can the corporation continue its operations, or will assets need to be sold so that the corporations’ debts can be paid off?
Though a business receivership may seem scary, it has many benefits during bankruptcy. It may require fewer hearings and may be less expensive.