Corporations Act 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Note: See section 600K .

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 70 - Information  

Subdivision C - Record-keeping  

SECTION 70-31   TRANSFER OF BOOKS TO ASIC ETC.  

Transfer of books to ASIC

70-31(1)    
If a person ceases to be the external administrator of a company, ASIC may, by written notice given to the person, require the person to:

(a) if the person has books relating to the external administration of the company in his or her possession or control - transfer possession or control of those books to ASIC within the period specified in the notice; or

(b) otherwise - notify ASIC, within the period and in the manner specified in the notice, that the person does not have books relating to the external administration of the company in the person ' s possession or control.

Offence

70-31(2)    
A person commits an offence if:

(a) the person is subject to a requirement under subsection (1); and

(b) the person intentionally or recklessly fails to comply with the requirement.

Penalty: 50 penalty units.

ASIC must transfer books to new external administrator

70-31(3)    
If:

(a) possession or control of books relating to an external administration of a company is transferred to ASIC under this section; and

(b) the books are in ASIC ' s possession or control; and

(c) a person (the new administrator ) is or becomes the external administrator of the company;

ASIC must, as soon as practicable, transfer possession or control of those books to the new administrator.

ASIC must transfer books to company

70-31(4)    
If:

(a) possession or control of books relating to a company is transferred to ASIC under this section; and

(b) the books are in ASIC ' s possession or control; and

(c) the company ceases to be a company under external administration;

ASIC must, as soon as practicable, transfer possession or control of those books to the company.

Lien against books not prejudiced

70-31(5)    
If ASIC is entitled to take possession or control of the books under this section:

(a) a person is not entitled, as against ASIC, to claim a lien on the books; and

(b) such a lien is not otherwise prejudiced.

70-31(6)    
If ASIC is required to give possession or control of the books to the new administrator under this section:

(a) a person is not entitled, as against the new administrator, to claim a lien on the books; and

(b) such a lien is not otherwise prejudiced.

Notice is not a legislative instrument

70-31(7)    
A notice under subsection (1) is not a legislative instrument.

Retention period for books

70-31(8)    
ASIC must retain all books of the company, and of the external administration of the company:

(a) that are relevant to affairs of the company; and

(b) possession or control of which is transferred to ASIC under this section; and

(c) possession or control of which is not transferred to another entity under this section, or under any other law;

for a period (the retention period ) of 2 years after the end of the external administration of the company.

Destruction of books at end of retention period

70-31(9)    
ASIC may destroy the books at the end of the retention period.

Relationship with other laws

70-31(10)    
Subsections (8) and (9) do not apply to the extent that ASIC is under an obligation to retain the books, or a part of the books, under another provision of this Act or under any other law.