Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p37
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 37/110)
Character Range: 247180–250038

company.

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

  "(9) The administrator 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).

Administrator not otherwise liable for company's debts

"443C. The administrator of a company under administration is not liable for the company's debts except under section 443A or 443B.

"Subdivision B—Indemnity

Right of indemnity

"443D. The administrator of a company under administration is entitled to be indemnified out of the company's property for:

    (a) debts for which the administrator is liable under section 443A or 443B; and

   (b) his or her remuneration as fixed under section 449E.

Right of indemnity has priority over other debts

"443E.(1) Subject to section 556, a right of indemnity under section 443D has priority over:

   (a)     all the company's unsecured debts; and

     (b)     subject to subsections (2) and (3) of this section, debts of the company secured by a floating charge on property of the company.

  "(2) Where:

     (a)     debts of a company under administration are secured by a floating charge on property of the company; and

   (b)    before the beginning of the administration, the chargee:

         (i) appointed a receiver of property of the company under a power contained in an instrument relating to the charge; or

          (ii) obtained an order for the appointment of a receiver of property of the company for the purpose of enforcing the charge; or

         (iii) entered into possession, or assumed control, of property of the company for that purpose; or

         (iv) appointed a person so to enter into possession or assume control (whether as agent for the chargee or for the company); and

     (c) the receiver or person is still in office, or the chargee is still in possession or control of the property;

the right of indemnity of the administrator under section 443D does not have priority over those debts, except so far as the chargee agrees.

  "(3) Where:

    (a)     debts of a company under administration are secured by a floating charge on property of the company; and

    (b)     during the administration, the chargee, consistently with this Part:

         (i) appoints a receiver of property of the company under a power contained in an instrument relating to the charge; or

         (ii) obtains an order for the appointment of a receiver of property of the company for the purpose of enforcing the charge; or

         (iii) enters into possession, or assumes control, of property of the company for that purpose; or

         (iv) appoints a person so to enter into possession