CORPORATIONS ACT 2001 - SECT 442CB Property subject to a security interest or to a retention of title clause--administrator's duty of care in exercising power of sale

CORPORATIONS ACT 2001 - SECT 442CB

  (1)   If the administrator of a company is entitled to dispose of property of the company by way of sale, and the property is subject to a security interest, the administrator must act reasonably in exercising a power of sale in respect of the property.

Note:   A company's property includes its PPSA retention of title property (see the definition of property applying to Part   5.3A, in section   435B).

  (2)   If:

  (a)   a company is under administration; and

  (b)   property is used or occupied by, or is in the possession of, the company; and

  (c)   another person is the owner of the property; and

  (d)   the property is subject to a retention of title clause under a contract; and

  (e)   the administrator is entitled to dispose of the property by way of sale;

then, in exercising a power of sale in respect of the property, the administrator must act reasonably.

  (3)   Subsections   (1) and (2) do not limit section   180, 181, 182, 183 or 184.