Section 442CB — Corporations Act 2001 (Cth)

(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.

Related sections

• s 442B — Dealing with property subject to circulating security interests
• s 442C — When administrator may dispose of encumbered property
• s 442CA — Property subject to a possessory security interest—inspection or examination by potential purchasers etc.
• s 442CC — Proceeds of sale of property
• s 442D — Administrator’s powers subject to powers of secured party, receiver or controller
• s 442E — Administrator has qualified privilege

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