Insolvency Law Reform Act 2016 (11 of 2016)

Schedule 2   Amendments relating to the Insolvency Practice Schedule (Corporations)

Part 2   Amendments consequential on the introduction of the Insolvency Practice Schedule (Corporations)

Corporations Act 2001

203   At the end of Division 3 of Part 5.9

Add:

600J Acts of external administrator valid etc.

(1) The acts of an external administrator are valid despite any defects that may afterwards be discovered in his or her appointment or qualification.

(2) A disposition of a company's property by an external administrator (including a disposition by way of conveyance, assignment, transfer or an instrument giving rise to a security interest) is, despite any defect or irregularity affecting the validity of the winding up or the appointment of the external administrator, valid in favour of any person taking such property in good faith and for value and without actual knowledge of the defect or irregularity.

(3) A person making or permitting a disposition of property to an external administrator is to be protected and indemnified in so doing despite any defect or irregularity affecting the validity of the winding up or the appointment of the external administrator that is not then known to that person.

(4) For the purposes of this section, a disposition of property is taken to include a payment of money.

(5) In this section:

external administrator of a company has the same meaning as in Schedule 2.