Section 189AC — Bankruptcy Act 1966 (Cth)

Right of indemnity for controlling trustee

(1) The controlling trustee is entitled to be indemnified out of the debtor’s property for:

(a) his or her remuneration; and

(b) any costs, charges or expenses properly and reasonably incurred by the controlling trustee while the debtor’s property was subject to control under this Division.

(2) To secure a right of indemnity under subsection (1), the controlling trustee has a lien on the debtor’s property.

(3) A lien under subsection (2) ceases to have effect if the debtor becomes a bankrupt.

Sourced from the Federal Register of Legislation at 26 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

Related sections

s 189AAA — Stay of proceedings relating to creditor’s petition until meeting of debtor’s creditors
s 189AA — Court orders with effect during period of control of debtor’s property
s 189AB — Charge over debtor’s property that is subject to control
s 189A — Report and declaration by controlling trustee
s 189B — Controlling trustee to prepare statement about possible resolutions
s 190 — Duties and powers of controlling trustee

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