THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.4B - WINDING UP IN INSOLVENCY OR BY THE COURT

Division 1 - General

SECTION 468   AVOIDANCE OF DISPOSITIONS OF PROPERTY, ATTACHMENTS ETC.  

468(1)  [Dispositions etc void]  

Any disposition of property of the company, other than an exempt disposition, and any transfer of shares or alteration in the status of the members of the company made after the commencement of the winding up by the Court is, unless the Court otherwise orders, void.

468(2)  [``exempt disposition'']  

In subsection (1), `` exempt disposition '', in relation to a company that has commenced to be wound up by the Court, means:

(a)  a disposition made by the liquidator, or by a provisional liquidator, of the company pursuant to a power conferred on him or her by:

(i) this Law; or,

(ii) rules of the Court that appointed him or her; or

(iii) an order of the Court; or

(aa)  a disposition made in good faith by, or with the consent of, an administrator of the company; or

(ab)  a disposition under a deed of company arrangement executed by the company; or

(b)  a payment of money by an Australian ADI out of an account maintained by the company with the Australian ADI, being a payment made by the Australian ADI:

(i) on or before the day on which the Court makes the order for the winding up of the company; and

(ii) in good faith and in the ordinary course of the banking business of the Australian bank.

468(3)  [Court may validate certain dispositions]  

Notwithstanding subsection (1), the Court may, where an application for winding up has been filed but a winding up order has not been made, by order:

(a)  validate the making, after the filing of the application, of a disposition of property of the company; or

(b)  permit the business of the company or a portion of the business of the company to be carried on, and such acts as are incidental to the carrying on of the business or portion of the business to be done, during the period before a winding up order (if any) is made;

on such terms as it thinks fit.

468(4)  [Avoidance of execution]  

Any attachment, sequestration, distress or execution put in force against the property of the company after the commencement of the winding up by the Court is void.