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 C - Effect of statutory manager assuming control  

SECTION 834A   EXERCISE OF DIRECTORS ' POWERS WHILE BODY CORPORATE UNDER STATUTORY MANAGEMENT  

Powers of directors while body corporate under statutory management

834A(1)    
While a body corporate is under statutory management, a director of the body must not perform or exercise a function or power of a director.

Offence

834A(2)    
A person commits an offence if:

(a)    the person is a director of a body corporate; and

(b)    the body corporate is under statutory management; and

(c)    the person purports to perform or exercise a function or power of a director.

Exceptions

834A(3)    
Subsections (1) and (2) do not apply to the extent that the director of the body corporate is acting with the written approval of the statutory manager of the body corporate or the Reserve Bank.

Note: A defendant bears an evidential burden in relation to the matter in this subsection: see subsection 13.3(3) of the Criminal Code .

Reserve Bank may revoke or vary the approval

834A(4)    
If a statutory manager (other than the Reserve Bank) gives written approval for the purposes of subsection (3) , the statutory manager must immediately notify the Reserve Bank in writing.

834A(5)    
The Reserve Bank may decide to revoke or vary the approval. The Reserve Bank ' s decision takes effect from the time the director is notified of the decision in writing.

Functions and powers of statutory manager prevail in case of conflict

834A(6)    
If:

(a)    subsection (3) applies; and

(b)    there is a conflict between:

(i) a function or power of the statutory manager of the body corporate; and

(ii) a function or power of the director in relation to the body corporate;

the statutory manager ' s function or power prevails.

Effect of this section

834A(7)    
This section does not remove a director of a body corporate from office.

834A(8)    
Nothing in this section affects a secured creditor ' s right to realise or otherwise deal with a security interest.