Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

DIVISION 3 - STATUTORY MANAGEMENT  

Subdivision A - Statutory management of body corporate in relation to CS facility licensee in crisis  

SECTION 832A   STATUTORY MANAGER TAKES CONTROL OF BODY CORPORATE  

832A(1)    
The Reserve Bank may take either or both of the actions in subsection (2) , if the Reserve Bank reasonably believes that the action is appropriate to manage or respond to a condition in section 831A being satisfied in relation to a CS facility licensee.

832A(2)    
The actions are:

(a)    taking control of the business of the licensee as statutory manager of the licensee; and

(b)    appointing one or more persons to take control of the business of the licensee, as statutory manager of the licensee.

Note: Section 836B deals with when there are 2 or more statutory managers of a body corporate (for example, when the Reserve Bank decides that both itself and another person are to take control as statutory manager).

832A(3)    
The Reserve Bank may take either or both of the actions in subsection (4) , if:

(a)    a statutory manager has taken control of the business of a CS facility licensee, or the Reserve Bank intends that a statutory manager will take control of the business of a CS facility licensee; and

(b)    the Reserve Bank reasonably believes that the action is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee.

832A(4)    
The actions are:

(a)    taking control of the business of a related body corporate of the licensee, that is incorporated in Australia, as statutory manager of the related body corporate; and

(b)    appointing one or more persons to take control of the business of a related body corporate of the licensee, that is incorporated in Australia, as statutory manager of the related body corporate.

Note: Section 836B deals with when there are 2 or more statutory managers of a body corporate (for example, when the Reserve Bank decides that both itself and another person are to take control as statutory manager).

832A(5)    
If the Reserve Bank decides to take an action under subsection (1) or (3) , the Reserve Bank must give the following, in writing, notice that a statutory manager will take, or is taking, control of the body corporate ' s business:

(a)    the body corporate;

(b)    if the body is under external administration - the external administrator.

Note: The appointment of the external administrator is terminated when a statutory manager takes control of the body corporate ' s business: see section 836A .

Limits on individual exercise of powers

832A(6)    
At the time a statutory manager (other than the Reserve Bank) is appointed, the Reserve Bank may give the statutory manager a notice, in writing, specifying any limits or conditions on the manager performing functions or exercising powers individually.

832A(7)    
A notice under subsection (6) must also be given to each other statutory manager of the body corporate (other than the Reserve Bank) at that time.

Instruments are not legislative instruments

832A(8)    
An instrument made under this section is not a legislative instrument.