CORPORATIONS ACT 2001
|CHAPTER 5 - EXTERNAL ADMINISTRATION
|PART 5.2 - RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS
SECTION 420 POWERS OF RECEIVER
Subject to this section, a receiver of property of a corporation has power to do, in Australia and elsewhere, all things necessary or convenient to be done for or in connection with, or as incidental to, the attainment of the objectives for which the receiver was appointed.
Without limiting the generality of subsection (1), but subject to any provision of the court order by which, or the instrument under which, the receiver was appointed, being a provision that limits the receiver's powers in any way, a receiver of property of a corporation has, in addition to any powers conferred by that order or instrument, as the case may be, or by any other law, power, for the purpose of attaining the objectives for which the receiver was appointed:
(a) to enter into possession and take control of property of the corporation in accordance with the terms of that order or instrument; and
(b) to lease, let on hire or dispose of property of the corporation; and
(c) to grant options over property of the corporation on such conditions as the receiver thinks fit; and
(d) to borrow money on the security of property of the corporation; and
(e) to insure property of the corporation; and
(f) to repair, renew or enlarge property of the corporation; and
(g) to convert property of the corporation into money; and
(h) to carry on any business of the corporation; and
[CCH Note: There is no paragraph 420(2)(i).]
(j) to take on lease or on hire, or to acquire, any property necessary or convenient in connection with the carrying on of a business of the corporation; and
(k) to execute any document, bring or defend any proceedings or do any other act or thing in the name of and on behalf of the corporation; and
[CCH Note: There is no paragraph 420(2)(l).]
(m) to draw, accept, make and indorse a bill of exchange or promissory note; and
(n) to use a seal of the corporation; and
(o) to engage or discharge employees on behalf of the corporation; and
(p) to appoint a solicitor, accountant or other professionally qualified person to assist the receiver; and
(q) to appoint an agent to do any business that the receiver is unable to do, or that it is unreasonable to expect the receiver to do, in person; and
(r) where a debt or liability is owed to the corporation - to prove the debt or liability in a bankruptcy, insolvency or winding up and, in connection therewith, to receive dividends and to assent to a proposal for a composition or a scheme of arrangement; and
(s) if the receiver was appointed under an instrument that created a security interest in uncalled share capital of the corporation:
(i) to make a call in the name of the corporation for the payment of money unpaid on the corporation's shares; or
(ii) on giving a proper indemnity to a liquidator of the corporation - to make a call in the liquidator's name for the payment of money unpaid on the corporation's shares; and
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(t) to enforce payment of any call that is due and unpaid, whether the calls were made by the receiver or otherwise; and
(u) to make or defend an application for the winding up of the corporation; and
[CCH Note: There is no paragraph 420(2)(v).]
(w) to refer to arbitration any question affecting the corporation.
S 420(2) amended by No 96 of 2010, s 3, Sch 1, Pt 3 (effective 30 January 2012).
The conferring by this section on a receiver of powers in relation to property of a corporation does not affect any rights in relation to that property of any other person other than the corporation.
In this section, a reference, in relation to a receiver, to property of a corporation is, unless the contrary intention appears, a reference to the property of the corporation in relation to which the receiver was appointed.
In this section:
lease includes a lease of goods that gives rise to a PPSA security interest in the goods.
S 420(5) inserted by No 96 of 2010, s 3, Sch 1, Pt 8 (effective 30 January 2012).