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Assignment:
Simon has been appointed as receiver of Imaging Pty Ltd (Imaging) which sells health care and consumer imaging products. Simon was appointed by WhichBank who had a security interest over the business and assets of Imaging.
Simon was keen to sell the assets off quickly as he was very busy. Simon decided not to auction off the medical imaging assets as it will be too time consuming and there is no guarantee they will sell at auction. Health Now Pty Ltd offers Simon $750,000 for the medical imaging assets as an immediate sale. Simon agrees immediately as the amount of the debt with WhichBank is $700,000.
The directors of Imaging tell Simon that two of the artworks on the wall of the office are particularly valuable and worth $100,000 each. Simon takes no notice of this information and sells all the artworks through Gumtree.
Simon seeks your advice as to his rights and duties as a receiver?
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