THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.2 - RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS

SECTION 418A   COURT MAY DECLARE WHETHER CONTROLLER IS VALIDLY ACTING  

418A(1)  [Application to Court where there is doubt]  

Where there is doubt, on a specific ground, about:

(a)  whether a purported appointment of a person, after the commencement of this section, as receiver of property of a corporation is valid; or

(b)  whether a person who has entered into possession, or assumed control, of property of a corporation after the commencement of this section did so validly under the terms of a charge on that property;

the person, the corporation or any of the corporation's creditors may apply to the Court for an order under subsection (2).

418A(2)  [Powers of Court]  

On an application, the Court may make an order declaring whether or not:

(a)  the purported appointment was valid; or

(b)  the person entered into possession, or assumed control, validly under the terms of the charge;

as the case may be, on the ground specified in the application or on some other ground.