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CORPORATIONS ACT 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)    View history reference

Note: See section 600K.

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 65 - Funds handling  

CLAUSE 65-40  HANDLING SECURITIES  

 View history reference

Securities must be deposited with administration account bank

65-40(1)  

An external administrator of a company must deposit in a bank:


(a) the negotiable instruments; and


(b) any other securities;

payable to the company or the external administrator as soon as practicable after they are received by the external administrator.

Exception

65-40(2)  

If the Court gives a direction that is inconsistent with subsection (1), that subsection does not apply to the extent of the inconsistency.

Offence

65-40(3)  

A person commits an offence of strict liability if:


(a) the person is subject to a requirement under subsection (1); and


(b) the person fails to comply with the requirement.

Penalty: 5 penalty units.

Note: A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code).

Delivery of securities

65-40(4)  

The negotiable instruments or other security must be delivered out on the signed request of the external administrator.

 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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