Property owned by people or companies sued in Ohio courts needs protection. According to the U.S Securities and Exchange Commission, an unprotected property may be exposed to wastage or dissipation. For such fears, the SEC appoints a third party to keep an eye on the assets as the owner faces court charges. The individual or company serving the court case is, therefore, said to be on receivership.
Other than keeping an eye on the property, the custodian has many other duties which can also be considered “the powers of the receiver.” He or she takes control of all the legal aspects of the property that includes filing claims on behalf of the owner. Also, the receiver can liquidate the property or distribute it to other parties in line with court orders.
The Cornell University Law School’s Legal Information Institute says that a receiver shall only be in charge until the court enters a judgment or asks him or her to continue pursuant to section 3203(e). Also, receivers must keep records of every transaction they undertake on behalf of the company. These records shall be made available for scrutiny by interested parties.
The court is the appointing authority that has explicit powers to remove a receiver from office. Also, the court may change the receiver’s powers at any time. The receiver has a 5% commission entitlement on any amount he or she transacts. If the receiver transacted no sum by the termination of the contract, the court will organize for his or her compensation. However, receivers have to prepare accounts of all receipts and disbursements before their payment is determined.