Document ID: chunk:federal_register_of_legislation:C2025C00185:section:420c
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 420C
Character Range: 1445847–1447173

420C  Receiver's power to carry on corporation's business during winding up
 (1) A receiver of property of a corporation that is being wound up may:
 (a) with the written approval of the corporation's liquidator or with the approval of the Court, carry on the corporation's business either generally or as otherwise specified in the approval; and
 (b) do whatever is necessarily incidental to carrying on that business under paragraph (a).
 (2) Subsection (1) does not:
 (a) affect a power that the receiver has otherwise than under that subsection; or
 (b) empower the receiver to do an act that he or she would not have power to do if the corporation were not being wound up.
 (3) A receiver of property of a corporation who carries on the corporation's business under subsection (1) does so:
 (a) as agent for the corporation; and
 (b) in his or her capacity as receiver of property of the corporation.
 (4) The consequences of subsection (3) include, but are not limited to, the following:
 (a) for the purposes of subsection 419(1), a debt that the receiver incurs in carrying on the business as mentioned in subsection (3) of this section is incurred in the course of the receivership;
 (b) a debt or liability that the receiver incurs in so carrying on the business is not a cost, charge or expense of the winding up.