Document ID: chunk:federal_register_of_legislation:C2025C00185:schedule:2:p28
Version: federal_register_of_legislation:C2025C00185
Segment Type: schedule
Provision Reference: sch 2 (pt 28/73)
Character Range: 6381649–6384894

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

Part 3—General rules relating to external administrations

Division 55—Introduction

55‑1  Simplified outline of this Part

      This Part sets out requirements for conducting the external administration of a company.
      The main provisions deal with:
             (a) the remuneration of the external administrator; and
             (b) the duties of the external administrator in handling the money and other property of the company; and
             (c) conflicts of interest; and
             (d) the duties of the external administrator to keep appropriate records, to report to ASIC and to give information, documents and reports to creditors, members of the company and others; and
             (e) creditor and company meetings; and
             (f) the creation and conduct of a committee to monitor the external administration (called a committee of inspection); and
             (g) the rights of creditors to review the external administration; and
             (h) the rights of creditors to remove the external administrator and appoint another; and
             (i) the review of the external administration by the Court.
      There are additional rules that apply to companies under external administration in Chapter 5 (for example, about appointment of external administrators) of this Act.
      Companies in receivership are not covered in this Part (see generally Part 5.2 of this Act).

Division 60—Remuneration and other benefits received by external administrators

Subdivision A—Introduction

60‑1  Simplified outline of this Division

      Remuneration
      The external administrator of a company is entitled to receive remuneration for necessary work properly performed by the external administrator in relation to the external administration.
      The amount of remuneration will usually be set under a remuneration determination. Remuneration determinations are made by:
             (a) in a members voluntary winding up—the members; and
             (b) in most other cases—the creditors or the committee of inspection (if there is one).
      However, if there is no remuneration determination, the external administrator will be entitled to receive a reasonable amount for the work. The maximum amount that the external administrator may receive in this way is $5,000 (exclusive of GST and indexed).
      The remuneration of provisional liquidators is, in most cases, determined by the Court.
      The remuneration of a restructuring practitioner for a company or for a restructuring plan is dealt with in the Insolvency Practice Rules.
      The Court may review the remuneration of the external administrator of a company and may also make orders under Division 90 about remuneration (including ordering repayment of remuneration).
      Other benefits
      The external administrator of a company must not:
             (a) employ a related entity, unless certain requirements are met;
             (b) purchase any assets of the company; or
             (c) get any other benefits or profits