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CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT  

Division 8 - Powers of administrator  

SECTION 442CB  PROPERTY SUBJECT TO A SECURITY INTEREST OR TO A RETENTION OF TITLE CLAUSE - ADMINISTRATOR'S DUTY OF CARE IN EXERCISING POWER OF SALE  

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442CB(1)  

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If the administrator of a company is entitled to dispose of property of the company by way of sale, and the property is subject to a security interest, the administrator must act reasonably in exercising a power of sale in respect of the property.

Note: A company's property includes its PPSA retention of title property (see the definition of property applying to Part 5.3A, in section 435B).

442CB(2)  

If:


(a) a company is under administration; and


(b) property is used or occupied by, or is in the possession of, the company; and


(c) another person is the owner of the property; and


(d) the property is subject to a retention of title clause under a contract; and


(e) the administrator is entitled to dispose of the property by way of sale;

then, in exercising a power of sale in respect of the property, the administrator must act reasonably.

442CB(3)  

Subsections (1) and (2) do not limit section 180, 181, 182, 183 or 184.


 



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