Topic: Creditors Rights
On March 26, 2014, the Michigan Supreme Court approved amendments to MCR 2.621 and MCR 2.622 regarding receiverships in Michigan. Court Rule 2.622 was amended to specifically set forth the process for the appointment of a receiver, selection of a receiver, and how the court must address objections to the appointment of a proposed receiver, receiver disqualifications, the specific requirements of an order appointing a receiver, the duties of a receiver, the powers of a receiver, the compensation and expenses of a receiver, and the bond of a receiver. If an objection is made to the person or entity appointed receiver, or if the court makes a determination that a different receiver should be appointed, the court must state its rationale for the selection of the receiver in consideration of six enumerated factors, which include the receiver’s experience in the operation and/or liquidation of the asset being administered and the receiver’s relevant legal, business, and receivership knowledge.
Anthony J. Kochis is an attorney at Wolfson Bolton PLLC, located in metropolitan Detroit — www.wolfsonbolton.com.