BANKRUPTCY ACT 1966

PART IV - PROCEEDINGS IN CONNEXION WITH BANKRUPTCY  

Division 2 - Creditors ' petitions  

SECTION 50   TAKING CONTROL OF DEBTOR ' S PROPERTY BEFORE SEQUESTRATION  

50(1)   [Court may make direction]  

At any time after a bankruptcy notice is issued, or a creditor ' s petition is presented, in relation to a debtor, but before the debtor becomes a bankrupt, the Court may:


(a) direct the Official Trustee or a specified registered trustee to take control of the debtor ' s property; and


(b) make any other orders in relation to the property.

50(1A)   [Circumstances in which direction may be made]  

The Court may give a direction or make an order only if:


(a) a creditor has applied for the Court to make a direction; and


(b) the Court is satisfied that it is in the interests of the creditors to do so; and


(c) the debtor has not complied with the bankruptcy notice.

50(1B)   [Court must specify when control ends]  

If the Court directs a trustee to take control of the debtor ' s property, the Court must specify when the control is to end.

50(2)   [Powers of Court]  

Without limiting the generality of subsection (1), the Court may, at any time after giving a direction under subsection (1), summon the debtor, or an examinable person in relation to the debtor, for examination under this section in relation to the debtor.

50(3)   [Summons to attend examination]  

A summons to a person under subsection (2) shall require the person to attend:


(a) at a specified place and at a specified time on a specified day; and


(b) before the Court, the Registrar or a magistrate, as specified in the summons;

to be examined on oath under this section about the debtor and the debtor ' s examinable affairs.

50(4)   [Examination of books]  

A summons to a person under subsection (2) may require the person to produce at the examination books (including books of an associated entity of the debtor) that:


(a) are in the possession of the first-mentioned person; and


(b) relate to the debtor or to any of the debtor ' s examinable affairs.

50(5)   [Sec 81(2) - (17) applies]  

For the purpose of the examination under this section of a person summoned under subsection (2), subsections 81(2) to (17) , inclusive, apply, with any modifications prescribed by the regulations, as if:


(a) a sequestration order had been made against the debtor when the Court gave the direction under subsection (1) of this section;


(b) the examination were being held under section 81 ; and


(c) a reference in those subsections to a creditor were a reference to a person who has a debt that would be provable in the debtor ' s bankruptcy if a sequestration order had been made as mentioned in paragraph (a) of this subsection.




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