Document ID: chunk:federal_register_of_legislation:C2016A00011:schedule:2:p35
Version: federal_register_of_legislation:C2016A00011
Segment Type: schedule
Provision Reference: sch 2 (pt 35/71)
Character Range: 310161–312989

amount exceeds:
 (i) $50; or
 (ii) if another amount is prescribed—that other amount.

Exception
 (2) Subsection (1) does not apply if, on the application of the external administrator of the company, the Court is satisfied that the external administrator had sufficient reason for failing to comply with the requirement in relation to the amount.

External administrator must pay penalty on excess
 (3) The external administrator must, as a penalty, pay interest to the Commonwealth on the excess, worked out:
 (a) at the rate of 20% per year; or
 (b) if another rate is prescribed—at that other rate;
for the period during which the external administrator fails to comply with the requirement.
 (4) The external administrator is personally liable for, and is not entitled to be reimbursed out of the property of the company in relation to, the payment of that interest.

65‑25  Paying money out of administration account

Money only to be paid out of administration account in accordance with this Act etc.
 (1) An external administrator of a company must not pay any money out of the administration account for the company otherwise than:
  (a) for purposes related to the external administration of the company; or
 (b) in accordance with this Act; or
 (c) in accordance with a direction of the Court.

Offence
 (2) A person commits an offence of strict liability if:
 (a) the person is subject to a requirement under subsection (1); and
 (b) the person fails to comply with the requirement.
Penalty: 50 penalty units.

65‑40  Handling securities

Securities must be deposited with administration account bank
 (1) An external administrator of a company must deposit in a bank:
 (a) the negotiable instruments; and
 (b) any other securities;
payable to the company or the external administrator as soon as practicable after they are received by the external administrator.

Exception
 (2) If the Court gives a direction that is inconsistent with subsection (1), that subsection does not apply to the extent of the inconsistency.

Offence
 (3) A person commits an offence of strict liability if:
 (a) the person is subject to a requirement under subsection (1); and
 (b) the person fails to comply with the requirement.
Penalty: 5 penalty units.
Note: A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code).

Delivery of securities
 (4) The negotiable instruments or other security must be delivered out on the signed request of the external administrator.

65‑45  Handling of money and securities—Court directions
 (1) The Court may, on application, give directions regarding the payment, deposit or custody of:
 (a) money; and
 (b) negotiable instruments and other securities;
that are payable to, or held by, an external administrator of a company.