Section 386. Powers of receiver or receiver and manager on liquidation

(1) After the commencement of winding up of a company—

(a) a receiver may continue to act as a receiver and exercise all the powers of a receiver in respect of property or assets secured under the debenture appointing the receiver; and

(b) a receiver and manager may continue to act as a receiver as referred to in paragraph (a) and a receiver and manager may exercise all the powers of a receiver and manager for the purpose of carrying on the business of the company provided that the receiver and manager obtains consent from the liquidator or if the liquidator withholds his consent, the consent of the Court.

(2) A receiver or receiver and manager holding office referred to in subsection (1) shall continue to act as the agent of the company.

(3) A debt or liability incurred by a company through the acts of a receiver or receiver and manager who is acting as the agent of the company in accordance with subsection (2) is not a cost, charge or expense of liquidation.