CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT  

Division 3 - Administrator assumes control of company's affairs  

SECTION 437D   ONLY ADMINISTRATOR CAN DEAL WITH COMPANY'S PROPERTY  

437D(1)   [ Transaction affecting company property]  

This section applies where:


(a) a company under administration purports to enter into; or


(b) a person purports to enter into, on behalf of a company under administration;

a transaction or dealing affecting property of the company.

437D(2)   [ Transaction void]  

The transaction or dealing is void unless:


(a) the administrator entered into it on the company's behalf; or


(b) the administrator consented to it in writing before it was entered into; or


(c) it was entered into under an order of the Court.

437D(3)   [ Exempt payments]  

Subsection (2) does not apply to a payment made:


(a) by an Australian ADI out of an account kept by the company with the ADI; and


(b) in good faith and in the ordinary course of the ADI's banking business; and


(c) after the administration began and on or before the day on which:


(i) the administrator gives to the ADI (under subsection 450A(3) or otherwise) written notice of the appointment that began the administration; or

(ii) the administrator complies with paragraph 450A(1) (b) in relation to that appointment;
whichever happens first.

437D(4)   [ Court order]  

Subsection (2) has effect subject to an order that the Court makes after the purported transaction or dealing.

437D(5)   [ Contravention by officer or employee]  

If, because of subsection (2), the transaction or dealing is void, or would be void apart from subsection (4), an officer or employee of the company who:


(a) purported to enter into the transaction or dealing on the company's behalf; or


(b) was in any other way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the transaction or dealing;

contravenes this subsection.


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