Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies where:
(a) a company under administration purports to enter into; or
(b) a person purports to enter into, on behalf of a company under administration;
a transaction or dealing affecting property of the company.
(2) The transaction or dealing is void unless:
(a) the administrator entered into it on the company's behalf; or
(b) the administrator consented to it in writing before it was entered into; or
(c) it was entered into under an order of the Court.
(3) Subsection (2) does not apply to a payment made:
(a) by an Australian ADI out of an account kept by the company with the ADI; and
(b) in good faith and in the ordinary course of the ADI's banking business; and
(c) after the administration began and on or before the day on which:
(i) the administrator gives to the ADI (under subsection 450A(3) or otherwise) written notice of the appointment that began the administration; or
(ii) the administrator complies with paragraph 450A(1)(b) in relation to that appointment;
whichever happens first.
(4) Subsection (2) has effect subject to an order that the Court makes after the purported transaction or dealing.
(5) If, because of subsection (2), the transaction or dealing is void, or would be void apart from subsection (4), an officer or employee of the company who:
(a) purported to enter into the transaction or dealing on the company's behalf; or
(b) was in any other way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the transaction or dealing;
contravenes this subsection.