Question from Ronsa, What are the Different Types of Roles, Functions, and Powers of External Administrators under the Corporations Act 2001, Chapter 5?
Answer from AI:
Under the Corporations Act 2001, Chapter 5, there are three main types of external administrators in Australia: liquidators, administrators, and receivers. Each role has specific functions and powers.
Liquidators
Liquidators are appointed when a company is in the process of being wound up. Their main role is to sell the company’s assets, pay off any debts, and distribute any remaining funds to the company’s shareholders.
Functions and Powers:
- Investigate the company’s affairs
- Identify and sell the company’s assets
- Pay the company’s creditors
- Distribute any remaining funds to the company’s shareholders
- Report any misconduct to the Australian Securities and Investments Commission (ASIC)
Administrators
Administrators are appointed to manage a company’s affairs while it is insolvent or likely to become insolvent. Their main role is to try to save the company or its business.
Functions and Powers:
- Take control of the company’s business, property, and affairs
- Investigate the company’s business, property, affairs, and financial circumstances
- Report to creditors about the company’s business, property, affairs, and financial circumstances
- Make a recommendation to creditors about whether the company should enter into a deed of company arrangement, go into liquidation, or be returned to the directors
Receivers
Receivers are usually appointed by a secured creditor who has a charge over some or all of the company’s assets. Their main role is to collect and sell enough of the company’s charged assets to repay the secured creditor.
Functions and Powers:
- Take control of the charged assets
- Collect and sell the charged assets to repay the secured creditor
- Pay out the money collected in the order required by law
It’s important to note that the specific powers and functions of an external administrator can vary depending on the terms of their appointment and the specific circumstances of the company. For more detailed information, you should consult the Corporations Act 2001 or seek legal advice.
Remember, this information is a general guide and not a substitute for professional legal advice. If you’re dealing with a situation involving an external administrator, it’s recommended that you consult with a legal professional.
The answer is written by AI.
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Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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