THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.4B - WINDING UP IN INSOLVENCY OR BY THE COURT

 View history note

Division 1 - General

 View history note

SECTION 468   AVOIDANCE OF DISPOSITIONS OF PROPERTY, ATTACHMENTS ETC.  

View history reference

468(1)  [Dispositions etc void]  

Any disposition of property of the company, other than an exempt disposition, and any transfer of shares or alteration in the status of the members of the company made after the commencement of the winding up by the Court is, unless the Court otherwise orders, void.

468(2)  [``exempt disposition'']  

In subsection (1), `` exempt disposition '', in relation to a company that has commenced to be wound up by the Court, means:

(a)  a disposition made by the liquidator, or by a provisional liquidator, of the company pursuant to a power conferred on him or her by:

(i) this Law; or,
(ii) rules of the Court that appointed him or her; or
(iii) an order of the Court; or

(aa)  a disposition made in good faith by, or with the consent of, an administrator of the company; or

(ab)  a disposition under a deed of company arrangement executed by the company; or

(b)  a payment of money by an Australian ADI out of an account maintained by the company with the Australian ADI, being a payment made by the Australian ADI:

(i) on or before the day on which the Court makes the order for the winding up of the company; and
(ii) in good faith and in the ordinary course of the banking business of the Australian bank.
 View history note

468(3)  [Court may validate certain dispositions]  

Notwithstanding subsection (1), the Court may, where an application for winding up has been filed but a winding up order has not been made, by order:

(a)  validate the making, after the filing of the application, of a disposition of property of the company; or

(b)  permit the business of the company or a portion of the business of the company to be carried on, and such acts as are incidental to the carrying on of the business or portion of the business to be done, during the period before a winding up order (if any) is made;

on such terms as it thinks fit.

468(4)  [Avoidance of execution]  

Any attachment, sequestration, distress or execution put in force against the property of the company after the commencement of the winding up by the Court is void.

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.