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 8 - Powers of administrator  

SECTION 442CB   PROPERTY SUBJECT TO A SECURITY INTEREST OR TO A RETENTION OF TITLE CLAUSE - ADMINISTRATOR ' S DUTY OF CARE IN EXERCISING POWER OF SALE  

442CB(1)  

If the administrator of a company is entitled to dispose of property of the company by way of sale, and the property is subject to a security interest, the administrator must act reasonably in exercising a power of sale in respect of the property.

Note: A company ' s property includes its PPSA retention of title property (see the definition of property applying to Part 5.3A , in section 435B ).

442CB(2)  
If:

(a) a company is under administration; and

(b) property is used or occupied by, or is in the possession of, the company; and

(c) another person is the owner of the property; and

(d) the property is subject to a retention of title clause under a contract; and

(e) the administrator is entitled to dispose of the property by way of sale;

then, in exercising a power of sale in respect of the property, the administrator must act reasonably.

442CB(3)  
Subsections (1) and (2) do not limit section 180 , 181 , 182 , 183 or 184 .