An company will go into receivership when a independent receiver is appointed by a secured creditor or, in rare conditions, by the court, to take control of a few or all of the company’s assets.
Commonly, receivers are appointed by secured lenders according to the terms of a charge (e.g. a mortgage, fixed and floating charge over the company’s assets, etc).
The part of a beneficiary is to gather and offer enough of the charged assets to repay the debt owed to the secured creditor.
The difference between receivership and other forms of external administration is that the appointment of a beneficiary does not influence the lawful presence of the company. The directors of the relevant company still remain in office however their forces are restricted relying on the powers granted to the receiver and the extent of the assets over which the receiver is appointed.