Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 6 · Corporate Insolvency — Receivership
75. Liability of receiver or manager
Feedback & supportThis section applies to any person entering into possession of any property of a company, or of any property in Singapore of a corporation, as receiver or manager of the property for the purpose of enforcing any charge or other security.
property
“property” includes —(a)money, goods, things in action, land and every description of property, wherever situated; and(b)obligations and every description of interest, whether present or future or vested or contingent, arising out of or incidental to property;
The person mentioned in subsection (1) is, despite any agreement to the contrary, but without prejudice to that person’s rights against the company or corporation or any other person —
company
“company” has the meaning given by section 4(1) of the Companies Act 1967;
personally liable on any contract entered into by that person in the performance of that person’s functions (except insofar as the contract otherwise provides) and, to the extent of any qualifying liability, on any contract of employment adopted by that person in the performance of those functions; and
entitled in respect of each liability mentioned in paragraph (a) to an indemnity out of the property of the company or corporation.
Subsection (2) must not be so construed as to constitute the person who is entitled to the charge or other security a mortgagee in possession.
charge
“charge” has the meaning given by section 4(1) of the Companies Act 1967;
Where at any time the receiver or manager vacates office —
the remuneration of the receiver or manager, and any expenses properly incurred by the receiver or manager; and
any indemnity to which the receiver or manager is entitled out of the property of the company or corporation,are to be charged on and paid out of any property of the company or corporation that is in the custody or under the control of the receiver or manager at that time, in priority to any charge or other security held by the person by whom or on whose behalf the receiver or manager was appointed.
For the purposes of subsection (2)(a), a liability under a contract of employment is a qualifying liability if that liability is incurred while the receiver or manager is in office, is in respect of a contract of employment with the company or corporation, and is a liability to pay any of the following:
liability
“liability” means a liability to pay money or money’s worth, regardless whether such liability is present or future, certain or contingent or of an amount that is fixed or liquidated or that is capable of being ascertained by fixed rules or as a matter of opinion, and includes any such liability arising —(a)under any written law;(b)under contract, tort or bailment;(c)as a result of a breach of trust by the person liable; or(d)out of an obligation to make restitution;
a sum by way of wages or salary;
remuneration payable in respect of accrued vacation leave;
an amount due as a retrenchment benefit, an ex gratia payment, or a payment in lieu of notice under any contract of employment, award or agreement;
contributions as the employer of any person under any written law relating to employees’ superannuation or provident funds or under any scheme of superannuation which is an approved scheme under the law relating to income tax.
Where a sum payable in respect of a qualifying liability mentioned in subsection (2)(a) is payable partly before and partly after the appointment of the receiver or manager, the personal liability of the receiver or manager under subsection (2) only extends to so much of that sum as is payable after the appointment of the receiver or manager.