Section 420A — Corporations Act 2001 (Cth)

Controller’s duty of care in exercising power of sale

(1) In exercising a power of sale in respect of property of a corporation, a controller must take all reasonable care to sell the property for:

(a) if, when it is sold, it has a market value—not less than that market value; or

(b) otherwise—the best price that is reasonably obtainable, having regard to the circumstances existing when the property is sold.

(2) Nothing in subsection (1) limits the generality of anything in section 180, 181, 182, 183 or 184.

Sourced from the Federal Register of Legislation at 17 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 419 — Liability of controller
s 419A — Liability of controller under pre‑existing agreement about property used by corporation
s 420 — Powers of receiver
s 420B — Court may authorise managing controller to dispose of property despite prior security interest
s 420C — Receiver’s power to carry on corporation’s business during winding up
s 421 — Managing controller’s duties in relation to bank accounts and financial records

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