Document ID: chunk:federal_register_of_legislation:C2016A00011:schedule:2:p52
Version: federal_register_of_legislation:C2016A00011
Segment Type: schedule
Provision Reference: sch 2 (pt 52/59)
Character Range: 139317–142067

has employed or engaged a related entity of the member;
 (ii) the creditors, by resolution, agree to the related entity being employed or engaged.

Offence
 (7) A person commits an offence of strict liability if:
 (a) the person is subject to a requirement under subsection (1); and
 (b) the person fails to comply with the requirement.
Penalty: 50 penalty units.
Note: A defendant bears an evidential burden in relation to the matters in subsections (3), (5) and (6) (see subsection 13.3(3) of the Criminal Code).

Effect of contravention of this section
 (8) A transaction or any other arrangement entered into in contravention of this section may be set aside by the Court.

80‑60  Obligations of creditor appointing a member of committee of inspection

Application of this section
 (1) This section applies if a creditor representing at least 10% in value of the creditors of a regulated debtor's estate appoints a person under section 80‑20 as a member of a committee of inspection in relation to the administration of the estate.
 (2) The creditor must not directly or indirectly become the purchaser of any part of the regulated debtor's estate.

Exceptions
 (3) Subsection (2) does not apply if the creditors resolve otherwise.
 (4) The creditor is not entitled to vote on the resolution referred to in subsection (3).
 (5) Subsection (2) does not apply to the extent that:
 (a) another provision of this Act, or of another law, requires or permits the creditor to purchase the property; or
 (b) the Court gives leave to the creditor to purchase the property.

Offence
 (6) A person commits an offence of strict liability if:
 (a) the person is subject to a requirement under subsection (2); and
 (b) the person fails to comply with the requirement.
Penalty: 50 penalty units.
Note: A defendant bears an evidential burden in relation to the matters in subsections (3) and (5) (see subsection 13.3(3) of the Criminal Code).

Effect of contravention of this section
 (7) A transaction or any other arrangement entered into in contravention of this section may be set aside by the Court.

80‑65  The Inspector‑General may attend committee meetings
  The Inspector‑General is entitled to attend any meeting of a committee of inspection.

80‑70  The Court may inquire into conduct of the committee
  The Court may inquire into the conduct of a committee of inspection and make such orders as it thinks fit to ensure the proper conduct of the committee.

Division 85—Directions by creditors

85‑1  Simplified outline of this Division
      The trustee of a regulated debtor's estate must have regard to directions given to the trustee by the creditors of the estate but is not obliged to comply with those directions.

85‑2  Division applies to the