Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 420C

(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.