CORPORATIONS ACT 2001
|PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS
|Division 80 - Committees of inspection
CLAUSE 80-60 OBLIGATIONS OF CREDITOR APPOINTING A MEMBER OF COMMITTEE OF INSPECTION
Application of this section
This section applies if a creditor representing at least 10% in value of the creditors of a company appoints a person under section 80-20 as a member of a committee of inspection in relation to the external administration of the company.
The creditor must not directly or indirectly become the purchaser of any part of the property of the company.
Subsection (2) does not apply if the creditors resolve otherwise.
The creditor is not entitled to vote on the resolution referred to in subsection (3).
Subsection (2) does not apply to the extent that:
(a) another provision of this Act, or of another law, requires or permits the creditor to purchase the property; or
(b) the Court gives leave to the creditor to purchase the property.
A person commits an offence of strict liability if:
(a) the person is subject to a requirement under subsection (2); and
(b) the person fails to comply with the requirement.
Penalty: 50 penalty units.
Note: A defendant bears an evidential burden in relation to the matters in subsections (3) and (5) (see subsection 13.3(3) of the Criminal Code).
Effect of contravention of this section
A transaction or any other arrangement entered into in contravention of this section may be set aside by the Court.