POWERS OF ATTORNEY ACT 1998 - SECT 57 Bankruptcy or insolvency

POWERS OF ATTORNEY ACT 1998 - SECT 57

57 Bankruptcy or insolvency

(1) This section applies only to enduring powers of attorney.

(2) If an individual attorney for a financial matter becomes bankrupt or insolvent or takes advantage of the laws of bankruptcy as a debtor under the Bankruptcy Act 1966 (Cwlth) or a similar law of a foreign jurisdiction, the power of attorney is revoked to the extent it gives power for financial matters to the attorney.

(3) If a corporate attorney is wound up or dissolved or a receiver (other than a receiver for a limited purpose) or administrator is appointed of the attorney, the power of attorney is revoked to the extent it gives power to the attorney.

Example—

Under an enduring power of attorney, X, an individual, exercises power for financial matters generally. X becomes bankrupt. Therefore, the enduring power of attorney is revoked to the extent it gives power for financial matters to X.

If X was a joint and several attorney with Y, the enduring power of attorney is only revoked to the extent it gives power to X. Y can continue to exercise the power.

The same applies if X was a joint attorney with Y because of section 59A .

If X was not a joint and several attorney and the enduring power of attorney gives an alternative or successive attorney power for financial matters, the alternative or next attorney then has power for financial matters.

If none of these apply, no-one is able to exercise power for financial matters under the enduring power of attorney.

Note—

Section 59A (Effect of power ending) allows the remaining joint attorney to exercise a power another joint attorney is unable to exercise.