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 8 - Powers of administrator

SECTION 442C   WHEN ADMINISTRATOR MAY DISPOSE OF ENCUMBERED PROPERTY  

442C(1)  [Charged property, etc]  

The administrator of a company under administration or of a deed of company arrangement must not dispose of:

(a)  property of the company that is subject to a charge; or

(b)  property that is used or occupied by, or is in the possession of, the company but of which someone else is the owner or lessor.

442C(2)  [Disposal in ordinary course of business, etc]  

Subsection (1) does not prevent a disposal:

(a)  in the ordinary course of the company's business; or

(b)  with the written consent of the chargee, owner or lessor, as the case may be; or

(c)  with the leave of the Court.

442C(3)  [Protection of interests of chargee, etc]  

The Court may only give leave under paragraph (2)(c) if satisfied that arrangements have been made to protect adequately the interests of the chargee, owner or lessor, as the case may be.