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 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision AA - Obligations on licensees and certain related bodies and persons  

SECTION 821K   NOTIFICATION OF APPOINTMENT OF EXTERNAL ADMINISTRATOR  

821K(1)    
If a person is considering appointing an external administrator of a body corporate that:

(a)    is a CS facility licensee; or

(b)    is a related body corporate of a CS facility licensee and is incorporated in Australia;

the person must give written notice to the Reserve Bank. The notice must be given at least 7 days before an external administrator of the body corporate is appointed.

Note: Failure to comply with this subsection is an offence: see subsection 1311(1) .

821K(2)    
An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code .

821K(3)    
An external administrator of the body corporate must not be appointed before that time, unless the Reserve Bank approves the appointment.

Invalid acts

821K(4)    
If:

(a)    the body corporate is incorporated in Australia; and

(b)    a purported external administrator of the body corporate, appointed in contravention of subsection (3) , purports to act in relation to the body corporate ' s business;

those acts are invalid and of no effect.

Safe harbour

821K(5)    
Subsection 588G(2) does not apply in relation to a person and a debt incurred by a body corporate if the debt is incurred:

(a)    at a time while this section prevents the appointment of an external administrator; and

(b)    in the ordinary course of the body corporate ' s business, or with the written consent of the Reserve Bank or by order of the Court.