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CORPORATIONS ACT 2001 - SECT 1224Q

Exercise of powers while sub-fund is in liquidation

Powers of corporate director while sub-fund in liquidation

             (1)  The corporate director of a CCIV contravenes this subsection if:

                     (a)  a sub-fund of the CCIV is being wound up, or a provisional liquidator of a sub-fund of the CCIV is acting; and

                     (b)  the corporate director purports to do any of the following:

                              (i)  carry on the business of the sub-fund;

                             (ii)  enter into a transaction or dealing on behalf of the CCIV affecting the property of the sub-fund.

             (2)  However, subsection (1) does not apply to the extent that the corporate director is acting:

                     (a)  with the written approval of the liquidator of the sub-fund or the Court; or

                     (b)  in circumstances in which, despite the fact that the sub-fund is being wound up, the corporate director is permitted by this Act to act.

             (3)  Despite subsection 13.3(3) of the Criminal Code , in a prosecution for an offence based on subsection (1) of this section, a defendant does not bear an evidential burden in relation to the matter in paragraph (2)(b).

Fault-based offence

             (4)  A person commits an offence if the person contravenes subsection (1).

Strict liability offence

             (5)  A person commits an offence of strict liability if the person contravenes subsection (1).

Functions and powers of liquidator prevail in case of conflict

             (6)  If subsection (2) applies and there is a conflict between a function or power of the liquidator of the sub-fund and a function or power of the corporate director in relation to the CCIV, the liquidator's function or power prevails.

Effect of section

             (7)  This section does not remove the corporate director of a CCIV from office.

             (8)  Nothing in this section affects a secured creditor's right to realise or otherwise deal with the security interest.

             (9)  Section 198G does not apply to a CCIV.

           (10)  A provision of this Act that applies despite section 198G also applies despite this section.

Definitions

           (11)  In this section:

"liquidator" includes a provisional liquidator.



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