CORPORATIONS ACT 2001 - SECT 420C Receiver's power to carry on corporation's business during winding up

CORPORATIONS ACT 2001 - SECT 420C

  (1)   A receiver of property of a corporation that is being wound up may:

  (a)   with the written approval of the corporation's liquidator or with the approval of the Court, carry on the corporation's business either generally or as otherwise specified in the approval; and

  (b)   do whatever is necessarily incidental to carrying on that business under paragraph   (a).

  (2)   Subsection   (1) does not:

  (a)   affect a power that the receiver has otherwise than under that subsection; or

  (b)   empower the receiver to do an act that he or she would not have power to do if the corporation were not being wound up.

  (3)   A receiver of property of a corporation who carries on the corporation's business under subsection   (1) does so:

  (a)   as agent for the corporation; and

  (b)   in his or her capacity as receiver of property of the corporation.

  (4)   The consequences of subsection   (3) include, but are not limited to, the following:

  (a)   for the purposes of subsection   419(1), a debt that the receiver incurs in carrying on the business as mentioned in subsection   (3) of this section is incurred in the course of the receivership;

  (b)   a debt or liability that the receiver incurs in so carrying on the business is not a cost, charge or expense of the winding up.