What is the role of receivership in compliance enforcement?

• A. The Director may appoint a judge to oversee court proceedings.
• B. The Registrar may appoint a receiver.
• C. The Director may ask the court to appoint a receiver to manage a business.
• D. Receivership is used to grant temporary licenses.

Answer: (C)

Receivership is a court-ordered enforcement tool used when there are serious compliance concerns and the public interest must be protected. In this framework, the Director can ask the court to appoint a receiver to take control of and manage the business and its assets. The receiver operates the business, ensures essential services continue, and implements corrective steps while violations are addressed, under court supervision. This is about external management by a neutral party to safeguard consumers and assets, not about licensing or internal regulatory actions.

So the role is for the Director to request the court to appoint a receiver to manage the business. It’s not about the Registrar appointing a receiver, nor about the court merely overseeing proceedings, and it’s not used to grant temporary licenses.