Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) an Aboriginal and Torres Strait Islander corporation that is under special administration purports to enter into; or
(b) a person purports to enter into, on behalf of an Aboriginal and Torres Strait Islander corporation that is under special administration;
a transaction or dealing affecting property of the corporation.
(2) The transaction or dealing is void unless:
(a) the special administrator entered into it on the corporation's behalf; or
(b) the special 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 corporation with the ADI; and
(b) in good faith and in the ordinary course of the ADI's banking business; and
(c) after the special administration begins and on or before the day on which the Registrar complies with subsection 493 - 1(4) in relation to the special administration.
(3A) Subsection (2) does not apply to a transaction or dealing affecting property of the corporation if:
(a) the corporation has made a restructuring plan under Part 5.3B of the Corporations Act (as applied by section 522 - 1 of this Act) that has not terminated; and
(b) the restructuring plan specifies how the property is to be dealt with; and
(c) the transaction or dealing complies with the terms of the restructuring plan.
(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 corporation who:
(a) purported to enter into the transaction or dealing on the corporation'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.
Penalty: 25 penalty units or imprisonment for 6 months, or both.
(6) This section has effect despite:
(a) Part 5.2 of the Corporations Act (as applied by section 516 - 1 of this Act); and
(b) Part 5.3A of the Corporations Act (as applied by section 521 - 1 of this Act).
Note: This means that a receiver, or an administrator appointed under Part 5.3A of the Corporations Act (as applied by section 521 - 1 of this Act), cannot enter into any transactions or dealings without the consent of the special administrator or an order of the Court.
(7) Despite subsection (6), this section does not affect the validity of anything that a person who is:
(a) a receiver, or a receiver and manager, of property of the corporation; or
(b) an administrator of the corporation appointed under Part 5.3A of the Corporations Act;
does after the special administration begins and on or before the day on which the Registrar complies with subsection 493 - 1(4) in relation to the special administration.