Document ID: chunk:federal_register_of_legislation:C2025C00185:schedule:2:p62
Version: federal_register_of_legislation:C2025C00185
Segment Type: schedule
Provision Reference: sch 2 (pt 62/73)
Character Range: 6468116–6470796

if the creditors resolve otherwise.
 (4) The member of the committee is not entitled to vote on the resolution referred to in subsection (3).
 (5) Subsection (1) does not apply to the extent that:
 (a) another provision of this Act, or of another law, requires or permits the member of the committee of inspection to derive the profit or advantage; or
 (b) the Court gives leave to the member of the committee to derive the profit or advantage.
Note: Subsection (1) would not, for example, prevent a creditor from recovering debts proved in a winding up, as this is permitted under Part 5.6 of Chapter 5.
 (6) Despite paragraph (2)(c), subsection (1) does not apply to the extent that:
 (a) the profit or advantage arises because the external administrator employs or engages a person to provide services in connection with the external administration of the company; and
 (b) the person is a related entity of a member of the committee of inspection; and
 (c) one of the following applies:
 (i) the member does not know, and could not reasonably be expected to know, that the external administrator 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 company appoints a person under section 80‑20 as a member of a committee of inspection in relation to the external administration of the company.
 (2) The creditor must not directly or indirectly become the purchaser of any part of the property of the company.

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