Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p10
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 10/110)
Character Range: 177426–180327

the following paragraphs:

      "(c) that is under administration; or

          (d) that has executed a deed of company arrangement that has not yet terminated;";

    (b) by omitting the definitions of "national newspaper", "relevant date" and "solvent".

Duty and liability of officer of corporation

36. Section 232 of the Corporations Law is amended by omitting paragraph (c) of the definition of "officer" in subsection (1) and substituting the following paragraphs:

  "(c) an administrator of the corporation;

     (ca) an administrator of a deed of company arrangement executed by the corporation;".

Substitution of Part heading

37. The heading to Part 5.2 of the Corporations Law is repealed and the following heading is substituted:

         "PART 5.2—RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS".

Application of Part

38.     Section 417 of the Corporations Law is amended by inserting "in this Part or Part 9.11" after "appears".

39.     After section 418 of the Corporations Law the following section is inserted:

Court may declare whether controller is validly acting

   "418A.(1) Where there is doubt, on a specific ground, about:

      (a) whether a purported appointment of a person, after the commencement of this section, as receiver of property of a corporation is valid; or

     (b) whether a person who has entered into possession, or assumed control, of property of a corporation after the commencement of this section did so validly under the terms of a charge on that property;

the person, the corporation or any of the corporation's creditors may apply to the Court for an order under subsection (2).

"(2) On an application, the Court may make an order declaring whether or not:

   (a)     the purported appointment was valid; or

     (b)     the person entered into possession, or assumed control, validly under the terms of the charge;

as the case may be, on the ground specified in the application or on some other ground.".

40. After section 419 of the Corporations Law the following section is inserted:

Liability of controller under pre-existing agreement about property used by corporation

  "419A.(1) This section applies if:

    (a)     under an agreement made before the control day in relation to a controller of property of a corporation, the corporation continues after that day to use or occupy, or to be in possession of, property ('the third party property') of which someone else is the owner or lessor; and

  (b)     the controller is controller of the third party property.

"(2) Subject to subsections (4) and (7), the controller is liable for so much of the rent or other amounts payable by the corporation under the agreement as is attributable to a period:

  (a)     that begins more than 7 days after the control day; and

  (b)     throughout which:

         (i) the corporation continues to use or occupy,