Treasury Laws Amendment (2017 Measures No. 2) Act 2017 (55 of 2017)

Schedule 2   Amendments relating to insolvency

Corporations Act 2001

6   Paragraphs 60-20(4)(a) to (c) of Schedule 2

Repeal the paragraphs, substitute:

(a) the external administrator employs or engages a person to provide services in connection with the external administration of the company; and

(b) a related entity of the external administrator directly or indirectly derives a profit or advantage as a result of that employment or engagement; and

(c) one of the following is satisfied:

(i) the external administrator does not know, and could not reasonably be expected to know, that the related entity would derive that profit or advantage;

(ii) the creditors, by resolution, agree to the related entity deriving the profit or advantage;

(iii) it is not reasonably practicable in all the circumstances to obtain the agreement, by resolution, of the creditors to the related entity deriving the profit or advantage and the cost of employing or engaging the person to provide the services is reasonable in all the circumstances.