CORPORATIONS ACT 2001
|PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS
|Division 65 - Funds handling
Application of this section
This section applies if:
(a) an external administrator of a company:
(i) is subject to a requirement under subsection 65-5(1) (paying money into administration account); and
(ii) fails to comply with the requirement in relation to an amount of money; and
(b) the amount exceeds:
(i) $50; or
(ii) if another amount is prescribed - that other amount.
Subsection (1) does not apply if, on the application of the external administrator of the company, the Court is satisfied that the external administrator had sufficient reason for failing to comply with the requirement in relation to the amount.
External administrator must pay penalty on excess
The external administrator must, as a penalty, pay interest to the Commonwealth on the excess, worked out:
(a) at the rate of 20% per year; or
(b) if another rate is prescribed - at that other rate;
for the period during which the external administrator fails to comply with the requirement.
The external administrator is personally liable for, and is not entitled to be reimbursed out of the property of the company in relation to, the payment of that interest.