Corporations Act 2001
This section applies if:
(a) a person (the former controller ) ceases to act as a controller of property of a corporation; and
(b) ASIC has not issued a notice to the former controller under section 422D ; and
(c) a registered liquidator (the new controller ):
(i) is appointed instead as the controller of that property of the corporation; or
(ii) if the corporation is a company under external administration - is appointed instead as the external administrator of the company; or
(iii) if subparagraphs (i) and (ii) do not apply and the corporation is a company under external administration - is the external administrator of the company.
The former controller must transfer to the new controller possession or control of any books relating to the control of the property that are in the former controller ' s possession or control.
The transfer must be made:
(a) if the new controller is appointed instead of the former controller - within 5 business days after the new controller is appointed; or
(b) otherwise - within 5 business days after the former controller ceases to act.
The former controller may take a copy of any part of the books before transferring possession or control of them to the new controller. New controller must allow inspection etc. 422C(4)
After possession or control of the books is transferred, the new controller must allow the former controller to inspect them at any reasonable time and take a copy of any part of the books. Offence 422C(5)
A person commits an offence if:
(a) the person is subject to a requirement under subsection (2) or (4); and
(b) the person intentionally or recklessly fails to comply with the requirement.
Penalty: 50 penalty units.Lien against books not prejudiced 422C(6)
If the new controller is entitled to take possession or control of the books under this section:
(a) a person is not entitled, as against the new controller, to claim a lien on the books; and
(b) such a lien is not otherwise prejudiced.
[ CCH Note: Regulation 10.25.02(3)(g) (which was effective 1 March 2017) provides that the amendments made by No 11 of 2016, s 3, Sch 2 apply in relation to external administrations on and after 1 September 2017.]