Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (4), if the Court has made an order placing a company under judicial management:
(a) at the time the judicial management commences:
(i) a person with the powers and functions of an officer of the company immediately before that time ceases to have those powers and functions; and
(ii) if the company is an eligible foreign life insurance company and there is a person with the powers and functions of a member of the Compliance Committee of the company immediately before that time--the person ceases to have those powers and functions; and
(iii) the judicial manager appointed by the Court starts to have the powers and functions mentioned in subparagraph (i) (and, if applicable, subparagraph (ii)); and
(b) while the company is under judicial management:
(i) if a person mentioned in subparagraph (a)(i) or (ii) purports to act in relation to the company's business, the purported act is invalid and of no effect; and
(ii) the judicial manager has the powers and functions of the members of the board of directors of the company (collectively and individually), including the board's powers of delegation.
(2) Subject to subsection (4), if the Court has made an order placing part of the business of a company under judicial management:
(a) at the time the judicial management commences:
(i) a person with the powers and functions of an officer of the company in relation to that part of the business immediately before that time ceases to have those powers and functions in relation to that part of the business; and
(ii) if the company is an eligible foreign life insurance company and there is a person with the powers and functions of a member of the Compliance Committee of the company immediately before that time in relation to that part of the business--the person ceases to have those powers and functions in relation to that part of the business; and
(iii) the judicial manager appointed by the Court starts to have the powers and functions mentioned in subparagraph (i) (and, if applicable, subparagraph (ii)) in relation to that part of the business; and
(b) while the company is under judicial management:
(i) if a person mentioned in subparagraph (a)(i) or (ii) purports to act in relation to that part of the business, the purported act is invalid and of no effect; and
(ii) the judicial manager has the powers and functions of the members of the board of directors of the company (collectively and individually), including the board's powers of delegation, in relation to that part of the business.
(3) Subsections (1) and (2) do not remove an officer or member of the Compliance Committee of the company from office.
(4) A life company may not issue policies without the leave of the Court if the company, or any part of the business of the company, is under judicial management.
(5) Subsection (4) does not prevent the variation of a policy under section 209.
(6) In this section, officer has the same meaning as it has in the Corporations Act 2001 .
Note: This section and other provisions relating to judicial management do not apply to the aspects described in subsection 16ZE(3) of the business and management of an eligible foreign life insurance company.