Receiving order, Financial Accounting

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RECEIVING ORDER

It includes five main important points as follows:

Effect of receiving order: The consequences of the making of the receiving order are:The debtor retains ownership, but loses possession and control of his property, the official receiver becomes receiver of the debtor's property.

Rescission of receiving order:
The order may be rescinded by the court if: The court has sanctioned a composition or scheme of arrangement; The debts have been paid in full.

Statement of affairs: Within fourteen days of the receiving order '(or before, but not more than three days before, the date of the debtor's own petition) the debtor must submit to the Official Receiver a statement of his affairs.

First Meeting of creditors: The Official Receiver must convene this meeting within 60 days of the receiving order, unless the court extends the time, by giving notice to each creditor mentioned in the statement of affairs and by six days' notice in the Gazette

Public examination: This is fixed by the court, on the application of the Official Receiver, as soon as is convenient after the time for submission of the debtor's statement of affairs Notice must be given to the debtor and the creditors.


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