Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.3 - CORPORATE GOVERNANCE OF CCIVs  

Division 2 - Officers and employees of the CCIV  

Subdivision B - The corporate director of a CCIV  

SECTION 1224Q   EXERCISE OF POWERS WHILE SUB-FUND IS IN LIQUIDATION  

Powers of corporate director while sub-fund in liquidation

1224Q(1)    
The corporate director of a CCIV contravenes this subsection if:

(a)    a sub-fund of the CCIV is being wound up, or a provisional liquidator of a sub-fund of the CCIV is acting; and

(b)    the corporate director purports to do any of the following:

(i) carry on the business of the sub-fund;

(ii) enter into a transaction or dealing on behalf of the CCIV affecting the property of the sub-fund.

1224Q(2)    
However, subsection (1) does not apply to the extent that the corporate director is acting:

(a)    with the written approval of the liquidator of the sub-fund or the Court; or

(b)    in circumstances in which, despite the fact that the sub-fund is being wound up, the corporate director is permitted by this Act to act.

1224Q(3)    
Despite subsection 13.3(3) of the Criminal Code , in a prosecution for an offence based on subsection (1) of this section, a defendant does not bear an evidential burden in relation to the matter in paragraph (2)(b) .

Fault-based offence

1224Q(4)    
A person commits an offence if the person contravenes subsection (1) .

Strict liability offence

1224Q(5)    
A person commits an offence of strict liability if the person contravenes subsection (1) .

Functions and powers of liquidator prevail in case of conflict

1224Q(6)    
If subsection (2) applies and there is a conflict between a function or power of the liquidator of the sub-fund and a function or power of the corporate director in relation to the CCIV, the liquidator ' s function or power prevails.

Effect of section

1224Q(7)    
This section does not remove the corporate director of a CCIV from office.

1224Q(8)    
Nothing in this section affects a secured creditor ' s right to realise or otherwise deal with the security interest.

1224Q(9)    
Section 198G does not apply to a CCIV.

1224Q(10)    
A provision of this Act that applies despite section 198G also applies despite this section.

Definitions

1224Q(11)    
In this section:

liquidator
includes a provisional liquidator.