Document ID: chunk:federal_register_of_legislation:C2016A00011:schedule:2:p62
Version: federal_register_of_legislation:C2016A00011
Segment Type: schedule
Provision Reference: sch 2 (pt 62/71)
Character Range: 377647–380546

If the external administrator does not comply with a direction, the external administrator must make a written record of that fact, along with the external administrator's reasons for not complying with the direction.
 (4) If there is a conflict between directions given by the creditors under subsection (1) and by the committee of inspection under section 80‑35, directions given by the creditors override any directions given by the committee.

Division 90—Review of the external administration of a company

Subdivision A—Introduction

90‑1  Simplified outline of this Division

      Review by the Court
      The Court may inquire into the external administration of a company either on its own initiative or on the application of the company, the external administrator, ASIC or a person with a financial interest in the external administration of the company (such as a creditor of the company).
      The Court has wide powers to make orders, including orders replacing the external administrator or dealing with losses resulting from a breach of duty by the external administrator.
      Review by another registered liquidator
      ASIC, the Court, creditors or members of a company may appoint a registered liquidator to review the external administration of the company. Such a review may look at a range of matters, including whether the remuneration of the external administrator is reasonable and whether costs and expenses have been properly incurred.
      The Insolvency Practice Rules may set the powers and duties of a registered liquidator conducting such a review and may deal with issues relating to the review process.
      If a provisional liquidator has been appointed for the company, review by another registered liquidator is not available.
      Removal of external administrator by creditors
      The creditors of a company under external administration (other than a company for which a provisional liquidator has been appointed) may remove the external administrator of the company and appoint another. However, the external administrator may apply to the Court to be reappointed.

Subdivision B—Court powers to inquire and make orders

90‑5  Court may inquire on own initiative
 (1) The Court may, on its own initiative during proceedings before the Court, inquire into the external administration of a company.
 (2) The Court may, for the purposes of such an inquiry, require a person who is or has at any time been the external administrator of the company to:
 (a) give information; or
 (b) provide a report; or
 (c) produce a document;
to the Court in relation to the external administration of the company.
 (3) This section does not limit the Court's powers under any other provision of this Act, or under any other law.

90‑10  Court may inquire on application of creditors etc.
 (1) The Court may, on the application of a person mentioned in subsection