Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If a person is considering appointing an external administrator of a body corporate that:
(a) is a CS facility licensee; or
(b) is a related body corporate of a CS facility licensee and is incorporated in Australia;
the person must give written notice to the Reserve Bank. The notice must be given at least 7 days before an external administrator of the body corporate is appointed.
Note: Failure to comply with this subsection is an offence: see subsection 1311(1).
(2) An offence based on subsection (1) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code .
(3) An external administrator of the body corporate must not be appointed before that time, unless the Reserve Bank approves the appointment.
Invalid acts
(4) If:
(a) the body corporate is incorporated in Australia; and
(b) a purported external administrator of the body corporate, appointed in contravention of subsection (3), purports to act in relation to the body corporate's business;
those acts are invalid and of no effect.
Safe harbour
(5) Subsection 588G(2) does not apply in relation to a person and a debt incurred by a body corporate if the debt is incurred:
(a) at a time while this section prevents the appointment of an external administrator; and
(b) in the ordinary course of the body corporate's business, or with the written consent of the Reserve Bank or by order of the Court.