Corporations Act 2001
Note: This Part does not apply to a CCIV or a sub-fund of a CCIV: see Division 4 of Part 8B.6 .
View history note
Hide history note(a) a company under administration purports to enter into; or
(b) a person purports to enter into, on behalf of a company under administration;
a transaction or dealing affecting property of the company.
437D(2) [ Transaction void]The transaction or dealing is void unless:
(a) the administrator entered into it on the company's behalf; or
(b) the administrator consented to it in writing before it was entered into; or
(c) it was entered into under an order of the Court. 437D(3) [ Exempt payments]
Subsection (2) does not apply to a payment made:
(a) by an Australian ADI out of an account kept by the company with the ADI; and
(b) in good faith and in the ordinary course of the ADI's banking business; and
(c) after the administration began and on or before the day on which:
(i) the administrator gives to the ADI (under subsection 450A(3) or otherwise) written notice of the appointment that began the administration; or
whichever happens first. 437D(4) [ Court order]
(ii) the administrator complies with paragraph 450A(1) (b) in relation to that appointment;
Subsection (2) has effect subject to an order that the Court makes after the purported transaction or dealing.
437D(5) [ Contravention by officer or employee]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 company who:
(a) purported to enter into the transaction or dealing on the company'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.
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