Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p24
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 24/110)
Character Range: 214299–217079

administration purports to enter into; or

    (b)     a person purports to enter into, on behalf of a company under administration;

a transaction or dealing affecting property of the company.

  "(2) The transaction or dealing is void unless:

  (a)     the administrator entered into it on the company's behalf; or

    (b)     the administrator consented to it in writing before it was entered into; or

  (c)     it was entered into under an order of the Court.

  "(3) Subsection (2) does not apply to a payment made:

    (a)     by an Australian bank out of an account kept by the company with the bank; and

    (b)     in good faith and in the ordinary course of the bank's banking business; and

    (c)     after the administration began and on or before the day on which:

         (i) the administrator gives to the bank (under subsection 450A(3) or otherwise) written notice of the appointment that began the administration; or

         (ii) the administrator complies with paragraph 450A(1)(b) in relation to that appointment;

     whichever happens first.

"(4) Subsection (2) has effect subject to an order that the Court makes after the purported transaction or dealing.

"(5) If, because of subsection (2), the transaction or dealing is void, or would be void apart from subsection (4), an officer of the company who:

     (a)     purported to enter into the transaction or dealing on the company's behalf; or

     (b)     was in any other way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the transaction or dealing;

contravenes this subsection.

Order for compensation where officer involved in void transaction

  "437E.(1) Where:

     (a)     a court finds a person guilty of an offence constituted by a contravention of subsection 437D(5) (including such an offence that is taken to have been committed because of section 5 of the Crimes Act 1914 or that section as it applies as a law of this jurisdiction); and

     (b)     the court is satisfied that the company or another person has suffered loss or damage because of the act or omission constituting the offence;

the court may (whether or not it imposes a penalty) order the first-mentioned person to pay compensation to the company or other person, as the case may be, of such amount as the order specifies.

Note: Section 73A defines when a court is taken to find a person guilty of an offence.

"(2) An order under subsection (1) may be enforced as if it were a judgment of the court.

"(3) The power of a court under section 1318 to relieve a person from liability as mentioned in that section extends to relieving a person from liability to be ordered under this section to pay compensation.

Effect of administration on company's members

"437F. A