This Part sets out requirements for conducting the external administration of a company.
The main provisions deal with:
- (a) the remuneration of the external administrator; and
- (b) the duties of the external administrator in handling the money and other property of the company; and
- (c) conflicts of interest; and
- (d) the duties of the external administrator to keep appropriate records, to report to ASIC and to give information, documents and reports to creditors, members of the company and others; and
- (e) creditor and company meetings; and
- (f) the creation and conduct of a committee to monitor the external administration (called a committee of inspection); and
- (g) the rights of creditors to review the external administration; and
- (h) the rights of creditors to remove the external administrator and appoint another; and
- (i) the review of the external administration by the Court.
There are additional rules that apply to companies under external administration in Chapter 5 (for example, about appointment of external administrators) of this Act.
Companies in receivership are not covered in this Part (see generally Part 5.2 of this Act).