Section 261 - Eligibility for appointment as receiver or manager

(1) The Registrar may appoint a receiver or manager.

(2) The Registrar shall, in appointing a receiver or a manager, take into account the following:

(a) professional competence;

(b) relevant experience in insolvency proceedings; and

(c) ability to manage the case load and ensure quality and timely execution.

(3) The following persons are not eligible to be appointed or to act as receivers or managers of a property or an undertaking of a company:

(a) an infant;

(b) a person found by a court of competent jurisdiction to be of unsound mind;

(c) a body corporate other than the office of the Registrar;

(d) a person in respect of whom an order has been made under section 177, for as long as the order remains in force unless leave to act as receiver or manager of the property or undertaking of the company concerned has been granted by the Court in accordance with that section; or

(e) an undischarged bankrupt, unless that bankrupt person has been granted leave to act as receiver or manager of the property or undertaking of the company concerned by the Court by which that person was adjudged bankrupt.

(4) A person is not eligible to be appointed or to act as a receiver or manager unless that person has in the opinion of the Registrar the requisite expertise, skill, and experience to manage and administer a company in receivership.

(5) A director or an auditor of a company is not eligible for appointment as a receiver or manager of a property or an undertaking of that company.

(6) An appointment made in contravention of this section is void and if a person named in subsection (4) or (5) or in paragraphs (a), (c), (d) or (e) of subsection (3) acts as a receiver or manager, that person commits an offence and is liable on summary conviction, to a fine of not less than three hundred and twenty-five penalty units and not more than seven hundred and fifty penalty units or, in the case of an individual, to a fine of not less than three hundred and twenty-five penalty units and not more than seven hundred and fifty penalty units or to a term of imprisonment of not less than three months and not more than six months or to both the fine and imprisonment.