Corporations Amendment (Insolvency) Act 2007 (132 of 2007)
Schedule 4 Fine-tuning voluntary administration
Part 2 Rights to property during administration
Corporations Act 2001
48 After section 440B
Insert:
440BA Liens and pledges
If:
(a) a company is under administration; and
(b) property of the company is subject to a lien or pledge; and
(c) the property is in the lawful possession of the holder of the lien or pledge;
then, during the administration of the company, the holder of the lien or pledge:
(d) may continue to possess the property; and
(e) cannot sell the property, or otherwise enforce the lien or pledge, except:
(i) with the administrator's written consent; or
(ii) with the leave of the Court.
440BB Distress for rent must not be carried out
If:
(a) a company is under administration; and
(b) the company is the lessee of property;
then, during the administration of the company, distress for rent must not be carried out against the property, except:
(c) with the administrator's written consent; or
(d) with the leave of the Court.