Document ID: chunk:federal_register_of_legislation:C2025C00167:section:188:p1
Version: federal_register_of_legislation:C2025C00167
Segment Type: section
Provision Reference: s 188 (pt 1/2)
Character Range: 655887–658590

188  Debtor may authorise trustee or solicitor to be controlling trustee
 (1) A debtor who desires that his or her affairs be dealt with under this Part without his or her estate being sequestrated and:
 (a) is personally present or ordinarily resident in Australia;
 (b) has a dwelling‑house or place of business in Australia;
 (c) is carrying on business in Australia, either personally or by means of an agent or manager; or
 (d) is a member of a firm or partnership carrying on business in Australia by means of a partner or partners or of an agent or manager;
may sign an authority in accordance with the approved form naming and authorising a registered trustee, a solicitor or the Official Trustee to call a meeting of the debtor's creditors and to take control of the debtor's property.
 (2) An authority signed by a debtor under this section is not effective for the purposes of this Part unless:
 (a) if the person authorised is a registered trustee or solicitor—the person has consented in writing to exercise the powers given by the authority; and
 (aa) if the person authorised is the Official Trustee—an Official Receiver has given the debtor written approval to name the Official Trustee in the authority.
 (2AA) If the person authorised is a registered trustee or a solicitor, then, before the person consents to exercise the powers given by the authority, the person must give the debtor the information prescribed by the regulations.
 (2AB) If the person authorised is the Official Trustee, then, before the Official Receiver gives approval to name the Official Trustee in the authority, the Official Receiver must give the debtor the information prescribed by the regulations.
 (2A) The regulations may prescribe the circumstances in which a person (other than the Official Trustee or a registered trustee) is ineligible to act as a controlling trustee under this Part.
 (2B) An authority signed by a debtor under this section is not effective for the purposes of this Part if, at the time the authority is signed, the person authorised:
 (a) is not the Official Trustee or a registered trustee; and
 (b) is ineligible, under the regulations, to act as a controlling trustee under this Part.
 (2C) If the person authorised is a registered trustee or solicitor, the authority signed by the debtor under this section is not effective for the purposes of this Part unless, before the person authorised consents to exercise the powers given by the authority, the debtor gives to the person authorised:
 (a) a statement of the debtor's affairs; and
 (b) a proposal for dealing with them under this Part.
Note: Section 6A sets out requirements for statements of affairs.
 (2D) If the person