Commonwealth Numbered Acts

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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 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.



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