receivership

noun re·ceiv·er·ship \ ri-ˈsē-vər-ˌship \
Updated on: 13 Oct 2017

Definition of receivership

1 :the office or function of a receiver
2 :the state of being in the hands of a receiver

Examples of receivership in a Sentence

  1. Years of financial difficulty eventually placed the company into receivership.

Recent Examples of receivership from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'receivership.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of receivership

15th century


Financial Definition of RECEIVERSHIP

receivership

What It Is

Receivership is a form of bankruptcy in which a court-appointed trustee reorganizes the bankrupt entity.

How It Works

In a receivership, a receiver takes custody of the company's property and operations. A court appoints the receiver.

The receiver's job is to pay down as much debt as possible. This usually means selling company assets, laying off employees and liquidating inventories.

Why It Matters

Companies that are in receivership are at the mercy of the receiver. In fact, the receivers control the company, making decisions large and small, and the receivers have court-appointed authority to do so. Accordingly, companies that are in receivership are usually on their last legs.


RECEIVERSHIP Defined for English Language Learners

receivership

noun

Definition of receivership for English Language Learners

  • law : the state of a business that has been placed under the control of a receiver because it is bankrupt


Law Dictionary

receivership

noun re·ceiv·er·ship \ ri-ˈsē-vər-ˌship \

legal Definition of receivership

1 :the office or function of a receiver
2 :a proceeding in which a receiver is appointed
3 :the state of being in the hands of a receiver — compare bankruptcy

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serious difficulty or misfortune

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