Corporations Act 2001
Note: See section 600K .PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS Division 80 - Committees of inspection CLAUSE 80-60 OBLIGATIONS OF CREDITOR APPOINTING A MEMBER OF COMMITTEE OF INSPECTION Application of this section 80-60(1)
This section applies if a creditor representing at least 10% in value of the creditors of a company appoints a person under section 80-20 as a member of a committee of inspection in relation to the external administration of the company. 80-60(2)
The creditor must not directly or indirectly become the purchaser of any part of the property of the company. Exceptions 80-60(3)
Subsection (2) does not apply if the creditors resolve otherwise. 80-60(4)
The creditor is not entitled to vote on the resolution referred to in subsection (3). 80-60(5)
Subsection (2) does not apply to the extent that:
(a) another provision of this Act, or of another law, requires or permits the creditor to purchase the property; or
(b) the Court gives leave to the creditor to purchase the property. Offence 80-60(6)
A person commits an offence of strict liability if:
(a) the person is subject to a requirement under subsection (2); and
(b) the person fails to comply with the requirement.
Penalty: 50 penalty units.
Note: A defendant bears an evidential burden in relation to the matters in subsections (3) and (5) (see subsection 13.3(3) of the Criminal Code ).Effect of contravention of this section 80-60(7)
A transaction or any other arrangement entered into in contravention of this section may be set aside by the Court.
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