RECEIVER, in taw, is an officer of the court through whom the court, on account of its jurisdiction, takes possession of property which 2s the subject of a suit, for the purpose of pre serving it from injury or loss, secures the pro ceeds and finally disposes of them according to the rights of all parties interested. Receivership is a remedial agency for the purpose of preserv ing the property in question from waste, de struction or deterioration pending litigation; it is auxiliary to the main action. It is a remedy which originated in the English Court of Chan cery and is purely equitable. Under the existing English law, and also that in Canada, a receiver may be appointed when the court deems it just or convenient. In the United States, courts of equity have general authority to appoint receiv ers, and in most States by statutory provision. The courts are generally disinclined to appoint a receiver, except that from all the circum stances it appears essential for the purpose of the preservation of the property in controversy. Technical injuries and circumstances which are doubtful are insufficient. A receiver will be ap pointed to prevent a fraudulent transfer, or pos session of property, or for the protection of estates, or of property of a partnership where dissolution is desired and the partners cannot agree; of mortgaged property', foreclosure pro ceedings, corporations which are insolvent, or which are fraudulently managed. The appoint ment of a receiver rests entirely within the dis cretion of the court to which the application is made, and the court also has discretion as to its choice of receiver. One will not be appointed a receiver who is not qualified to perform his duties, and he must be impartial, independent and disinterested. A corporation may be ap
pointed a receiver if authorized by its charter. In order to obtain a receiver one must show the right to the property, or a lien upon it, or that the property in question was obtained by fraud, or is in danger of loss from waste, or the misconduct or insolvency of the party in possession, and the circumstances must show extreme necessity. A receiver is created by the court whose officer he is and is under its con trol, supervision and protection. His duty is purely ministerial and the utmost good faith is required of him; his acts should be with the general or special authority of the court and must be without discrimination for the interests involved. A receiver may employ counsel, agents and assistants, make necessary repairs, pay taxes and bring suits. He must keep the property insured and is required to give a bond for faithful performance of his duty. He takes complete possession of the property at the time when appointed; his liability is generally official, and he is responsible to any person who sus tains loss through his negligence or misconduct in relation to his trust; he is entitled to a com pensation for his services, which is in some jurisdictions fixed by statute, in others by the discretion of the court. Consult Alderson, W. A., 'Practical Treatise on the Law of Receivers' (New York 1905); High, J. L., 'Treatise on the Law of Receivers' (4th ed., Chicago 1910) Kerr, 'Law and Practice as to Receivers' (6th ed., Toronto 1912) • Smith, J. W., 'The Law of Receivership' (Chicago 1897).