Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Note: This Part does not apply to a CCIV or a sub-fund of a CCIV: see Division 4 of Part 8B.6 .

Division 2 - Restructuring  

Subdivision E - Effect on company etc. during restructuring  

SECTION 453U   DUTIES OF COURT OFFICER IN RELATION TO PROPERTY OF COMPANY  

453U(1)    
This section applies where an officer of a court (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 restructuring.

453U(2)    
During the restructuring, 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 restructuring practitioner):

(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 restructuring practitioner) money received because of the attachment of such a debt.

453U(3)    
The court officer must deliver to the restructuring practitioner any property of the company that is in the court officer ' s possession under a process of execution (whenever begun).

453U(4)    
The court officer must pay to the restructuring practitioner 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.

453U(5)    
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) .

453U(6)    
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.

453U(7)    
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.

453U(8)    
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 restructuring practitioner, despite anything else in this section.