Receivership is an enforcement procedure devised by law to ensure that security used for a facility is realised by the creditors. The global meltdown and recession coupled with general political, economic mismanagement have resulted in sub optimal performance of many companies, corporate collapses and also increased defaults in loan servicing especially foreign exchange denominated loan agreements. The importance of receivership has been emphasized and shown to be the most effective forms of enforcement procedures available to debenture holders. This paper therefore seeks to analyse the laws on the appointment of receivers, their disqualification under Companies and Allied Matters Act CAMA) and also the lacunae which have provided avenues for encouraging incompetent receivership practices. An attempt has been made to enlighten receivers, courts and managements of the respectively of the boundaries of actions of directors during receivership, the right to derivative actions, and director’s right to enforcement of receivers duties as well as claims for breaches of duties of receivers. It has also been expressed that receiverships have tended to encourage self-perpetuating corporate oligarchies especially through government institutional interventions.
