Document ID: chunk:federal_register_of_legislation:C2016A00011:schedule:2:p33
Version: federal_register_of_legislation:C2016A00011
Segment Type: schedule
Provision Reference: sch 2 (pt 33/71)
Character Range: 304998–307807

employed or engaged;
 (iii) it is not reasonably practicable in all the circumstances to obtain the agreement, by resolution, of the creditors to the related entity being employed or engaged and the cost of employing the related entity is reasonable in all the circumstances.
 (5) Subsection (1) does not apply to the extent that the profit or advantage is a payment that:
 (a) is made to the external administrator by or on behalf of the Commonwealth or an agency or authority of the Commonwealth; and
 (b) is of a kind prescribed.

Offence
 (6) 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), (4) 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.

Division 65—Funds handling

65‑1  Simplified outline of this Division

      The external administrator of a company has duties to:
             (a) promptly pay all company money into an account (called an administration account); and
             (b) promptly deposit instruments such as securities with a bank; and
             (c) keep the account separate and not pay any money that is not company money into the account; and
             (d) only pay money out of the account if it is for a legitimate purpose.
      The external administrator of a company may keep a single account for a group of related companies (called a pooled group).
      People with a financial interest in the external administration of a company (such as creditors) may ask the Court to give directions to the external administrator about the way money and other property of the company is to be handled.
      If the external administrator of a company does not comply with this Division, the external administrator may have to pay penalties, be paid less remuneration or be removed as external administrator.

65‑5  External administrator must pay all money into an administration account

External administrator must pay money into the administration account
 (1) The external administrator of a company must pay all money received by the external administrator on behalf of, or in relation to, the company into an administration account for the company within 5 business days after receipt.

Exception
 (2) If the Court gives a direction that is inconsistent with subsection (1), that subsection does not apply to the extent of the inconsistency.

Offence
 (3) A person commits an offence of strict liability if:
 (a) the person is subject to a requirement