Commonwealth Consolidated Acts

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What the Commonwealth or ASIC does with the property

Trust property vested in the Commonwealth

             (1)  If property vests in the Commonwealth under subsection 601AD(1A), the Commonwealth may:

                     (a)  continue to act as trustee; or

                     (b)  apply to a court for the appointment of a new trustee.

Note:          Under paragraph (1)(a), the Commonwealth may be able to transfer the property to a new trustee chosen in accordance with the trust instrument.

          (1A)  If the Commonwealth continues to act as trustee in respect of the property, subject to its obligations as trustee, the Commonwealth:

                     (a)  in the case of money--must credit the amount of the money to a special account (within the meaning of the Public Governance, Performance and Accountability Act 2013 ); or

                     (b)  otherwise:

                              (i)  may sell or dispose of the property as it thinks fit; and

                             (ii)  if the Commonwealth does so--must credit the amount of the proceeds to a special account (within the meaning of the Public Governance, Performance and Accountability Act 2013 ).

Note:          ASIC may, for and on behalf of the Commonwealth, perform all the duties and exercise all the powers of the Commonwealth as trustee in relation to property held on trust by the Commonwealth (see subsection 8(6) of the ASIC Act).

Property vested in ASIC

             (2)  If property vests in ASIC under subsection 601AD(2), ASIC may:

                     (a)  dispose of or deal with the property as it sees fit; and

                     (b)  apply any money it receives to:

                              (i)  defray expenses incurred by ASIC in exercising its powers in relation to the company under this Chapter; and

                             (ii)  make payments authorised by subsection (3).

ASIC must deal with the rest (if any) under Part 9.7.

Obligations attaching to property vested in the Commonwealth

          (2A)  For the purposes of subsection (3), if any liability is imposed on property under a law of the Commonwealth immediately before the property vests in the Commonwealth under subsection 601AD(1A), then:

                     (a)  immediately after that time, the liability applies to the Commonwealth as if the Commonwealth were a body corporate; and

                     (b)  the Commonwealth is liable to make notional payments to discharge that liability.

Obligations attaching to property

             (3)  Any property that vests in the Commonwealth or ASIC under subsection 601AD(1A) or (2) remains subject to all liabilities imposed on the property under a law and does not have the benefit of any exemption that the property might otherwise have because it is vested in the Commonwealth or ASIC. These liabilities include a liability that:

                     (a)  is a security interest in or claim on the property; and

                     (b)  arises under a law that imposes rates, taxes or other charges.

Extent of Commonwealth's and ASIC's obligation

             (4)  The Commonwealth's or ASIC's obligation under subsection (2A) or (3) is limited to satisfying the liabilities out of the company's property to the extent that the property is properly available to satisfy those liabilities.


             (5)  The Commonwealth or ASIC (as the case requires) must keep:

                     (a)  a record of property that it knows is vested in it under this Chapter; and

                     (b)  a record of its dealings with that property; and

                     (c)  accounts of all money received from those dealings; and

                     (d)  all accounts, vouchers, receipts and papers relating to the property and that money.

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