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.


 

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.