THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT

Division 6 - Protection of company's property during administration

SECTION 440G   DUTIES OF COURT OFFICER IN RELATION TO PROPERTY OF COMPANY  

440G(1)  [Court officer receives notice]  

This section applies where an officer of a court (in this section called the ``court officer'' ), being:

(a)  a sheriff; or

(b)  the registrar or other appropriate officer of the court;

receives written notice of the fact that a company is under administration.

440G(2)  [Limits on court officer's powers]  

During the administration, the court officer cannot:

(a)  take action to sell property of the company under a process of execution; or

(b)  pay to a person (other than the administrator):

(i) proceeds of selling property of the company (at any time) under a process of execution; or

(ii) money of the company seized (at any time) under a process of execution; or

(iii) money paid (at any time) to avoid seizure or sale of property of the company under a process of execution; or

(c)  take action in relation to the attachment of a debt due to the company; or

(d)  pay to a person (other than the administrator) money received because of the attachment of such a debt.

440G(3)  [Delivery of property to administrator]  

The court officer must deliver to the administrator any property of the company that is in the court officer's possession under a process of execution (whenever begun).

440G(4)  [Payment of money to administrator]  

The court officer must pay to the administrator all proceeds or money of a kind referred to in paragraph (2)(b) or (d) that:

(a)  are in the court officer's possession; or

(b)  have been paid into the court and have not since been paid out.

440G(5)  [Costs to be a first charge]  

The costs of the execution or attachment are a first charge on property delivered under subsection (3) or proceeds or money paid under subsection (4).

440G(6)  [Court officer may retain proceeds etc to give effect to charge]  

In order to give effect to a charge under subsection (5) on proceeds or money, the court officer may retain, on behalf of the person entitled to the charge, so much of the proceeds or money as the court officer thinks necessary.

440G(7)  [Power of Court]  

The Court may, if it is satisfied that it is appropriate to do so, permit the court officer to take action, or to make a payment, that subsection (2) would otherwise prevent.

440G(8)  [Purchaser in good faith]  

A person who buys property in good faith under a sale under a process of execution gets a good title to the property as against the company and the administrator, despite anything else in this section.