Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 11 - EXTERNAL ADMINISTRATION  

PART 11-2 - SPECIAL ADMINISTRATION  

Division 496 - Effect of appointment of special administrator on officers of the corporation  

SECTION 496-15   ONLY SPECIAL ADMINISTRATOR CAN DEAL WITH CORPORATION ' S PROPERTY  

496-15(1)    
This section applies if:

(a)    an Aboriginal and Torres Strait Islander corporation that is under special administration purports to enter into; or

(b)    a person purports to enter into, on behalf of an Aboriginal and Torres Strait Islander corporation that is under special administration;

a transaction or dealing affecting property of the corporation.

496-15(2)    
The transaction or dealing is void unless:

(a)    the special administrator entered into it on the corporation ' s behalf; or

(b)    the special administrator consented to it in writing before it was entered into; or

(c)    it was entered into under an order of the Court.

496-15(3)    
Subsection (2) does not apply to a payment made:

(a)    by an Australian ADI out of an account kept by the corporation with the ADI; and

(b)    in good faith and in the ordinary course of the ADI ' s banking business; and

(c)    after the special administration begins and on or before the day on which the Registrar complies with subsection 493-1(4) in relation to the special administration.

496-15(3A)    

Subsection (2) does not apply to a transaction or dealing affecting property of the corporation if:

(a)    the corporation has made a restructuring plan under Part 5.3B of the Corporations Act (as applied by section 522-1 of this Act) that has not terminated; and

(b)    the restructuring plan specifies how the property is to be dealt with; and

(c)    the transaction or dealing complies with the terms of the restructuring plan.

496-15(4)    
Subsection (2) has effect subject to an order that the Court makes after the purported transaction or dealing.

496-15(5)    
If, because of subsection (2) , the transaction or dealing is void, or would be void apart from subsection (4) , an officer or employee of the corporation who:

(a)    purported to enter into the transaction or dealing on the corporation ' s behalf; or

(b)    was in any other way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the transaction or dealing;

contravenes this subsection.

Penalty: 25 penalty units or imprisonment for 6 months, or both.

496-15(6)    
This section has effect despite:

(a)    Part 5.2 of the Corporations Act (as applied by section 516-1 of this Act); and

(b)    Part 5.3A of the Corporations Act (as applied by section 521-1 of this Act).

Note:

This means that a receiver, or an administrator appointed under Part 5.3A of the Corporations Act (as applied by section 521-1 of this Act), cannot enter into any transactions or dealings without the consent of the special administrator or an order of the Court.

496-15(7)    
Despite subsection (6) , this section does not affect the validity of anything that a person who is:

(a)    a receiver, or a receiver and manager, of property of the corporation; or

(b)    an administrator of the corporation appointed under Part 5.3A of the Corporations Act;

does after the special administration begins and on or before the day on which the Registrar complies with subsection 493-1(4) in relation to the special administration.