Document ID: chunk:federal_register_of_legislation:C2016A00011:schedule:2:p32
Version: federal_register_of_legislation:C2016A00011
Segment Type: schedule
Provision Reference: sch 2 (pt 32/71)
Character Range: 302363–305247

made under section 60‑10.

Subdivision D—Remuneration of liquidators in winding up by ASIC

60‑17  Remuneration of liquidators in winding up by ASIC
  If ASIC orders under section 489EA that a company be wound up, ASIC may determine the remuneration that the liquidator is entitled to receive.

Subdivision E—Duties of external administrators relating to remuneration and benefits etc.

60‑20  External administrator must not derive profit or advantage from the administration of the company

Deriving profit or advantage from the company
 (1) An external administrator of a company must not directly or indirectly derive any profit or advantage from the external administration of the company.

Circumstances in which profit or advantage is taken to be derived
 (2) To avoid doubt, an external administrator of a company is taken to derive a profit or advantage from the external administration of the company if:
 (a) the external administrator directly or indirectly derives a profit or advantage from a transaction (including a sale or purchase) entered into for or on account of the company; or
 (b) the external administrator directly or indirectly derives a profit or advantage from a creditor or member of the company; or
 (c) a related entity of the external administrator directly or indirectly derives a profit or advantage from the external administration of the company.

Exceptions
 (3) Subsection (1) does not apply to the extent that:
 (a) another provision of this Act, or of another law, requires or permits the external administrator to derive the profit or advantage; or
 (b) the Court gives leave to the external administrator to derive the profit or advantage.
Note: Subsection (1) would not, for example, prevent the external administrator from recovering remuneration for necessary work properly performed by the external administrator in relation to the external administration of the company, as the external administrator is permitted to do so under other provisions of this Act.
 (4) Despite paragraph (2)(c), subsection (1) does not apply to the extent that:
 (a) the profit or advantage arises because the external administrator employs or engages a person to provide services in connection with the external administration of the company; and
 (b) the person is a related entity of the external administrator; and
 (c) one of the following is satisfied:
 (i) the external administrator does not know, and could not reasonably be expected to know, that the person employed or engaged is a related entity of the external administrator;
 (ii) the creditors, by resolution, agree to the related entity being employed or engaged;
 (iii) it is not reasonably practicable in all the circumstances to obtain the agreement, by resolution, of the creditors to the related entity being employed or engaged and the cost of employing the related entity is reasonable