40CPowers and duties of receivers

1. A receiver of any asset of a local authority or a specified water organisation is, as the circumstances and the context permit, affected by the restrictions and responsibilities which by law affect a receiver of a company or of an asset or property or rights of a company as if the local authority or the specified water organisation were a company.

2. The provisions of this Act are, in their application to a receiver of an asset of a local authority, subject to the modifications and exceptions set out in Schedule 1.

3. If the assets subject to a charge to which this section applies comprise rates or other revenues, then, for the purposes of this section, from the date of the appointment of the receiver and until such time as the appointment terminates,—

4. the rates or other revenues so charged vest in the receiver; and
5. all powers necessary for the recovery of rates levied under section 115 of the Local Government Act 2002 or other revenues are conferred on, and may be exercised by, the receiver.

6. If Crown commissioners—water services are or have been appointed to an entity under section 258MC of the Local Government Act 2002 (either before or after the appointment of a receiver in respect of some or all of the assets or rates of that entity under section 40A or section 40B(1)), the High Court may order that any receiver so appointed may not, until the High Court so orders, exercise any of the rights, powers, and duties of a receiver.

7. In subsection (1), specified water organisation means a water organisation that is exempt under an Order in Council made under section 66 of the Local Government (Water Services) Act 2025 from the requirement that a water organisation must be a company incorporated under the Companies Act 1993.