444. Precedence among receivers

Where there are two or more floating charges subsisting over all or any part of the property of the company, a receiver may be appointed under this Part of this Act by virtue of each such charge. A receiver appointed by or on the application of the holder of a floating charge, which has priority over any other floating charge by virtue of which a receiver has been appointed, has the powers conferred on a receiver by this Act, to the exclusion of any other receiver.

Where two or more floating charges rank equally with one another, and two or more receivers have been appointed by virtue of such charges, the receivers so appointed are deemed to have been appointed as joint receivers, and shall act jointly, unless the instrument of appointment or each of the respective instruments of appointment, otherwise provide.

Subject to subsection (4), the powers of a receiver appointed by or on the application of the holder of a floating charge are suspended by, and as from the date of the appointment of a receiver by or on the application of the holder of a floating charge having priority over that charge, to such extent as may be necessary to enable the receiver second mentioned, to exercise his powers under this Act. Any powers so suspended shall take effect again when the prior floating charge ceases to attach to the property subject to the charge, or when the appointment of a receiver under the prior floating charge ceases in respect of that property, whichever occurs first.

The suspension of the powers of a receiver under subsection (3) does not have the effect of requiring him to release any part of the property (including any letters or documents) of the company from his control, until he receives from the receiver superceding him a valid indemnity (subject to the limit of the value of such part of the property as is subject to the charge, by virtue of which he was appointed)

The suspension of the powers of a receiver under this section shall not cause the floating charge by virtue of which he was appointed, to cease to attach to the property in respect of which he was appointed.

Nothing in this section shall prevent the same receiver being appointed by virtue of two or more floating charges.