Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 420C

             (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.