Corporations Amendment (Insolvency) Act 2007 (132 of 2007)

Schedule 4   Fine-tuning voluntary administration

Part 2   Rights to property during administration

Corporations Act 2001

58   At the end of section 442C

Add:

(4) If the administrator proposes to dispose of property of the company under paragraph (2)(a), the Court may, by order, direct the administrator not to carry out that proposal.

(5) The Court may only make an order under subsection (4) on the application of:

(a) if paragraph (1)(a) applies - the chargee, lienee or pledgee, as the case may be; or

(b) if paragraph (1)(b) applies - the owner or lessor, as the case may be.

(6) The Court may only make an order under subsection (4) if it is not satisfied that arrangements have been made to protect adequately the interests of the applicant for the order.

(7) If:

(a) a company is under administration or is subject to a deed of company arrangement; and

(b) property of the company is subject to a charge, lien or pledge; and

(c) the administrator disposes of the property;

the disposal extinguishes the charge, lien or pledge.

(8) For the purposes of paragraph (2)(a), if:

(a) property is used or occupied by, or is in the possession of, a company; and

(b) another person is the owner of the property; and

(c) the property is subject to a retention of title clause under a contract; and

(d) the owner demands the return of the property;

a disposal of the property that occurs after the demand is made does not mean that the disposal is not in the ordinary course of the company's business.