189Control of property of a debtor who has given authority under section 188

189  Control of property of a debtor who has given authority under section 188

 (1) When an authority given by a debtor under section 188 becomes effective, the property of the debtor becomes subject to control under this Division.

 (1A) The control continues until one of the following events happens:

 (a) the creditors resolve at a meeting called under this Part that the property cease to be subject to control;

 (b) the debtor and a trustee execute a personal insolvency agreement following a special resolution of creditors;

 (d) 4 months pass since the authority under section 188 became effective;

 (e) the Court, under section 208, releases the property from control;

 (f) the debtor becomes a bankrupt;

 (g) the debtor dies.

 (1B) The trustee must notify the Official Receiver in writing within 7 days after the trustee becomes aware that the control has ended because of an event specified in subsection (1A).

 (2) A debtor whose property is subject to control under this Division:

 (a) shall not remove, dispose of or deal with any of his or her property except with the consent of the controlling trustee;

 (b) shall furnish to the controlling trustee such information with respect to any of the debtor’s examinable affairs as the controlling trustee requires; and

 (c) shall comply with any direction given to him or her by the controlling trustee with respect to his or her property or affairs.

 (3) A disposal of, or dealing with, property by a debtor in contravention of subsection (2) is not invalid by reason only of that contravention.

189AAA  Stay of proceedings relating to creditor’s petition until meeting of debtor’s creditors

 (a) an authority signed by a debtor under section 188 has become effective; and

 (i) a creditor’s petition was presented against the debtor before the authority became effective; or

 (ii) a creditor’s petition is presented against the debtor after the authority became effective but before the first or only meeting of the debtor’s creditors called under the authority;

proceedings relating to that petition are, by force of this subsection, stayed until:

 (c) the conclusion of the meeting; or

 (d) the adjournment of the meeting;

whichever is the earlier.

 (2) This section does not limit subsection 206(1).

189AA  Court orders with effect during period of control of debtor’s property

 (1) The Court may make an order that has effect while the property of the debtor is subject to control: