Section 420C — Corporations Act 2001 (Cth)

(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.

Related sections

• s 420 — Powers of receiver
• s 420A — Controller’s duty of care in exercising power of sale
• s 420B — Court may authorise managing controller to dispose of property despite prior security interest
• s 421 — Managing controller’s duties in relation to bank accounts and financial records
• s 421A — Managing controller to report within 2 months about corporation’s affairs
• s 422 — Reports by receiver or managing controller

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