Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p13
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 13/110)
Character Range: 185025–187883

(4) limits the matters to which the Court may have regard for the purposes of subsection (2).

"(6) An order may be made subject to conditions, for example (but without limitation):

  (a) a condition that:

       (i) the net proceeds of the sale or disposal; and

         (ii) the net proceeds of the sale or disposal of such other property (if any) as is specified in the condition and is subject to the controller's charge;

     or a specified part of those net proceeds, be applied in payment of specified amounts secured by the prior charge; or

    (b) a condition that the controller apply a specified amount in payment of specified amounts secured by the prior charge.

Receiver's power to carry on corporation's business during winding up

"420C.(1) 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).

  "(2) 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.

"(3) 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.

"(4) 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.".

Controller's duties in relation to bank accounts and accounting records

   42. Section 421 of the Corporations Law is amended:

     (a) by omitting subsection (1) and substituting the following subsection:

      "(1) A controller of property of a corporation must:

         (a) open and maintain an account, with an Australian bank, bearing:

              (i) the controller's own name; and

              (ii) in the case of a receiver of the property—the title 'receiver'; and

              (iii) otherwise—the title 'controller'; and

              (iv) the corporation's name;

         or 2 or more such accounts; and

         (b) within 3 business days after money of the corporation comes under the control of the controller, pay that money into such an account that