Document ID: chunk:federal_register_of_legislation:C2025C00185:schedule:2:p33
Version: federal_register_of_legislation:C2025C00185
Segment Type: schedule
Provision Reference: sch 2 (pt 33/73)
Character Range: 6395340–6398212

(1), the Insolvency Practice Rules may provide for the remuneration of a restructuring practitioner for a restructuring plan that has been made in relation to a company to be dealt with wholly or partly under the restructuring plan.

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 external administrator employs or engages a person to provide services in connection with the external administration of the company; and
 (b) a related entity of the external administrator directly or indirectly derives a profit or advantage as a result of that employment or engagement; 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 related entity would derive that profit or advantage;
 (ii) the creditors, by resolution, agree to the related entity deriving the profit or advantage;
 (iii) it is not reasonably practicable in all the circumstances to obtain the agreement, by resolution, of the creditors to the related entity deriving the profit or advantage and the cost of employing or engaging the person to provide the services