108Effect on external administration

108 Effect on external administration

Termination of existing external administrator

(1) The appointment of an external administrator of a body corporate is terminated when a statutory manager takes control of the body corporate’s business.

(2) Failure to give an external administrator notice under section 93 does not affect the operation of this section.

External administrator may only be appointed with approval during statutory management

(3) While a body corporate is under statutory management, an external administrator of the body corporate must not be appointed unless the Reserve Bank approves the appointment in writing.

Invalid acts

(4) If either of the following purports to act in relation to a body corporate’s business, those acts are invalid and of no effect:

(a) a person who ceased to be the external administrator of the body corporate under subsection (1);

(b) a purported external administrator of the body corporate appointed in contravention of subsection (3).