Senator Keaveny Sponsors Legislation Addressing Commercial Receivership Cases in Missouri

Senator Keaveny Sponsors Legislation Addressing Commercial Receivership
Cases in Missouri

JEFFERSON CITY — State Sen. Joseph Keaveny, D-St. Louis, has pre-filed Senate Bill 578 for the 2016 session, which would modify Missouri law as it relates to commercial receiverships, a legal process by which a court appoints an entity or individual to be responsible for property, assets and rights of a business. It’s a court action often made when a business cannot meet its financial obligations.

Senator Keaveny said some courts rarely see commercial receivership cases, and existing statutory law leaves many questions unanswered or creates uncertainty to the appropriate means of administering a commercial receivership estate.

“Missouri lacks a uniform set of developed, standardized statutes and guidelines for when courts are faced with the duty to administer receiverships,” said Sen. Keaveny. “It’s creating a number of problems, especially when complex issues arise in situations where the company is still operating. We need clear-cut, defined laws regarding this practice so that it’s employed in a consistent manner, and justice can be provided evenly, predictably and with the recognition of the rights of all stakeholders in receivership estate assets.”

Commercial receivership is increasingly employed as an alternative to bankruptcy that, while valuable in some instances, can be a slower and more costly process.

“As more companies rely on receiverships to resolve internal issues, it’s critical that we establish clarity in regards to this legal action,” said Sen. Keaveny. “My legislation is a much-needed solution that will give courts clear guidelines on how receiverships should be carried out in Missouri.”

Senator Keaveny corresponded with The Missouri Bar on this legislative effort to tighten receivership law in the Show-Me State.

For more information on Sen. Keaveny’s sponsored legislation, visit his official Missouri Senate website atwww.senate.mo.gov/keaveny.