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.