Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p11
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 11/110)
Character Range: 180073–182832

rent or other amounts payable by the corporation under the agreement as is attributable to a period:

  (a)     that begins more than 7 days after the control day; and

  (b)     throughout which:

         (i) the corporation continues to use or occupy, or to be in possession of. the third party property; and

      (ii) the controller is controller of the third party property.

"(3) Within 7 days after the control day, the controller may give to the owner or lessor a notice that specifies the third party property and states that the controller does not propose to exercise rights in relation to that property as controller of the property, whether on behalf of the corporation or anyone else.

"(4) Despite subsection (2), the controller is not liable for so much of the rent or other amounts payable by the corporation under the agreement as is attributable to a period during which a notice under subsection (3) is in force, but such a notice does not affect a liability of the corporation.

  "(5) A notice under subsection (3) ceases to have effect if:

     (a)     the controller revokes it by writing given to the owner or lessor; or

     (b)     the controller exercises, or purports to exercise, a right in relation to the third party property as controller of the property, whether on behalf of the corporation or anyone else.

"(6) For the purposes of subsection (5), the controller does not exercise, or purport to exercise, a right as mentioned in paragraph (5)(b) merely because the controller continues to be in possession, or to have control, of the third party property, unless the controller:

   (a)     also uses the property; or

   (b)     asserts a right, as against the owner or lessor, so to continue.

"(7) Subsection (2) does not apply in so far as the Court, by order, excuses the controller from liability, but an order does not affect a liability of the corporation.

  "(8) The controller is not taken because of subsection (2):

   (a)     to have adopted the agreement; or

      (b)     to be liable under the agreement otherwise than as mentioned in subsection(2).".

41. After section 420 of the Corporations Law the following sections are inserted:

Controller's duty of care in exercising power of sale

"420A.(1) In exercising a power of sale in respect of property of a corporation, a controller must take all reasonable care to sell the property for:

     (a)     if, when it is sold, it has a market value—not less than that market value; or

     (b)     otherwise—the best price that is reasonably obtainable, having regard to the circumstances existing when the property is sold.

"(2) Nothing in subsection (1) limits the generality of anything in section 232.

Court may authorise managing controller