Corporations Act 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Note: See section 600K .

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 65 - Funds handling  

SECTION 65-40   HANDLING SECURITIES  

Securities must be deposited with administration account bank

65-40(1)    
An external administrator of a company must deposit in a bank:

(a) the negotiable instruments; and

(b) any other securities;

payable to the company or the external administrator as soon as practicable after they are received by the external administrator.

Exception

65-40(2)    
If the Court gives a direction that is inconsistent with subsection (1), that subsection does not apply to the extent of the inconsistency.

Offence

65-40(3)    
A person commits an offence of strict liability if:

(a) the person is subject to a requirement under subsection (1); and

(b) the person fails to comply with the requirement.

Penalty: 20 penalty units.

Note: A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code ).

Delivery of securities

65-40(4)    
The negotiable instruments or other security must be delivered out on the signed request of the external administrator.