Banking Act 1959

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

Division 2 - Protection of depositors  

Subdivision A - General provisions relating to depositor protection  

SECTION 13C   Banking Act statutory managers - termination of control   Conditions necessary for termination of control

(1)  


If APRA assumes control of a body corporate ' s business or appoints an administrator of a body corporate ' s business, APRA must ensure that either it or an administrator of the body corporate ' s business has control of the body corporate ' s business until:


(a) APRA considers that it is no longer necessary for it or an administrator to remain in control of the body corporate ' s business; or


(b) APRA has applied for the body corporate to be wound up.

A termination of control that is permitted under this section is called an ultimate termination of control .

Note:

This provision does not prevent a change, or changes, between control of a body corporate ' s business by APRA and an administrator or between administrators.

(2)   Events to precede termination  

Before making an ultimate termination of control by a Banking Act statutory manager of a body corporate ' s business, APRA must:


(a) ensure that directors of the body corporate have been appointed or elected under the body corporate ' s constitution at a meeting called by the Banking Act statutory manager in accordance with the body corporate ' s constitution; or


(b) appoint directors of the body corporate by instrument in writing; or


(c) ensure that a liquidator for the body corporate has been appointed.

(3)   Power to terminate control  

If the requirements in subsections (1) and (2) are satisfied, APRA may by instrument in writing make an ultimate termination of control of a body corporate ' s business by a Banking Act statutory manager.

(4)  


If the Banking Act statutory manager at the time of the termination is an administrator, the instrument of termination also operates as a termination of the appointment of the administrator. A copy of the instrument must be given to the administrator. However, mere failure to give the copy to the administrator does not affect the termination of the appointment.

(5)   Period of director ' s appointment  

If a director is elected or appointed under subsection (2), the director takes office on the termination of the Banking Act statutory manager ' s control of the body corporate ' s business. If the director was appointed by APRA, the director holds office until the body corporate ' s next annual general meeting, subject to any terms and conditions imposed by APRA on the director ' s appointment. If the director was appointed or elected under the body corporate ' s constitution, the constitution governs the appointment.

Note:

For further information about what happens when a Banking Act statutory manager is in control of a body corporate ' s business, see Subdivision B .


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.