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CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.2 - RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS  

SECTION 420C  RECEIVER'S POWER TO CARRY ON CORPORATION'S BUSINESS DURING WINDING UP  

420C(1)  [Power of receiver to carry on business]  


A receiver of property of a corporation that is being wound up may:


(a) with the written approval of the corporation's liquidator or with the approval of the Court, carry on the corporation's business either generally or as otherwise specified in the approval; and


(b) do whatever is necessarily incidental to carrying on that business under paragraph (a).

420C(2)  [Receiver's other powers not affected]  


Subsection (1) does not:


(a) affect a power that the receiver has otherwise than under that subsection; or


(b) empower the receiver to do an act that he or she would not have power to do if the corporation were not being wound up.

420C(3)  [Receiver as agent for corporation]  


A receiver of property of a corporation who carries on the corporation's business under subsection (1) does so:


(a) as agent for the corporation; and


(b) in his or her capacity as receiver of property of the corporation.

420C(4)  [Consequences of carrying on a business]  


The consequences of subsection (3) include, but are not limited to, the following:


(a) for the purposes of subsection 419(1), a debt that the receiver incurs in carrying on the business as mentioned in subsection (3) of this section is incurred in the course of the receivership;


(b) a debt or liability that the receiver incurs in so carrying on the business is not a cost, charge or expense of the winding up.

 



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