Functions of receiver and effect of receivership order

(1) The receiver of a cell of a protected cell company, (a) may do all such things as may be necessary for the purposes set out in section 17(2) of this Act; and (b) shall have all the functions and powers of the directors of the protected cell company in respect of the business and cellular assets of or attributable to the cell of the protected cell (2) The receiver may at any time apply to the Court, (a) for directions as to the extent or exercise of any of its functions or powers; (b) for a receivership order to be discharged or varied; or (c) for an order as to any matter arising in the course of its receivership. (3) In exercising its functions and powers, the receiver is deemed to act as the agent of the protected cell company, and shall not incur any personal liability except to the extent that it acts fraudulently, recklessly, negligently, or in bad faith. (4) No person who deals with the receiver in good faith, shall be concerned to enquire whether the receiver is acting within its powers. (5) When an application has been made for, and during the period of operation of, a receivership order, (a) no proceedings may be instituted or continued by or against the protected cell company in relation to the cell in respect of which the receivership order was made; and 21 (b) no steps may be taken to enforce any security or the execution of legal process in respect of the business or cellular assets of or attributable to the cell of the protected cell in respect of which the receivership order was made, except by leave of the Court, which may be conditional or unconditional. (6) During the period of operation of a receivership order, (a) the functions and powers of the directors of a protected cell company shall cease in respect of the business and cellular assets of or attributable to the cell of the protected cell company in respect of which the order was made; and (b) the receiver of the cell of a protected cell company shall be deemed to be a director of the protected cell company in respect of the non-cellular assets of the protected cell company unless there are no creditors in respect of that cell entitled to have recourse against the protected cell company’s non-