Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 2 - Protection of depositors  

Subdivision B - Provisions dealing with control of a body corporate ' s business by a Banking Act statutory manager  

SECTION 15   Effect on directors of Banking Act statutory manager taking control of a body corporate ' s business  

(1)  


The directors of a body corporate cease to hold office when a Banking Act statutory manager takes control of the body corporate ' s business.
Note:

For the definition of director , see subsection (4).

(2)  


A director of a body corporate must not be appointed or elected while a Banking Act statutory manager is in control of the body corporate ' s business unless the appointment is made under subsection 13C(2) .

(3)  


If a person who ceased to hold office under subsection (1), or a purported director of the body corporate appointed or elected in contravention of subsection (2), purports to act in relation to the body corporate ' s business while a Banking Act statutory manager has control of the body corporate ' s business, those acts are invalid and of no effect.

(3A)  


Subsections (1), (2) and (3) do not apply in relation to a body corporate that is a foreign ADI.

(3B)  


Subsection (3C) applies if:


(a) subsections (1), (2) and (3) do not apply in relation to a body corporate because of subsection (3A); and


(b) a Banking Act statutory manager takes control of the body corporate ' s business; and


(c) a director of the body corporate acts, or purports to act in relation to the body corporate ' s business while the Banking Act statutory manager has control of the body corporate ' s business.

(3C)  


Those acts are invalid and of no effect to the extent that they relate to:


(a) the Australian business assets and liabilities of the body corporate; or


(b) the management of the body corporate, to the extent that the management relates to the Australian business assets and liabilities of the body corporate.

(4)  


For the purposes of this section, director has the same meaning as it has in the Corporations Act 2001 .



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