Practice question
A creditor group holds 60% of total debtor obligations and moves to remove an incompetent receiver under Section 32. The receiver asserts that the court may act only on its own initiative and cannot entertain any creditor motion. Which is correct?
- Only the receiver can request removal
- Section 32 permits removal by the court on motion of creditors holding more than 50%, as well as motu proprio, on the statutory grounds
- A creditor majority automatically removes the receiver without a court order
- A 60% group can never qualify
- Incompetence is expressly excluded as a ground
Legal references
- RA 10142 (FRIA), Sections 4, 7, 9, 17-18, 31-35, 64-70 and 115-121: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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