73Notification of appointment of external administrator of designated entity

73 Notification of appointment of external administrator of designated entity

(1) A person who is considering appointing an external administrator of a body corporate that is a designated entity must give a written notice to the Reserve Bank, and do so in the approved form (if any).

(2) The Reserve Bank may, by notice in writing given to the person, approve the appointment.

(3) A person contravenes this subsection if:

(a) the person appoints an external administrator of a designated entity; and

(b) neither of the following applies:

(i) the Reserve Bank approved the appointment under subsection (2);

(ii) notification under subsection (1) regarding the appointment was given at least 7 days before the appointment was made.

Strict liability offence

(4) A person commits an offence of strict liability if the person contravenes subsection (3).

Penalty:

(a) for a body corporate—600 penalty units; and

(b) for an individual—60 penalty units.

Civil penalty provision

(5) A person is liable to a civil penalty if the person contravenes subsection (3).

Civil penalty:

(a) for a body corporate—the greater of:

(i) 50,000 penalty units; and

(ii) if the court can determine the benefit derived and detriment avoided because of the contravention—that amount multiplied by 3; and

(b) for an individual—the greater of:

(i) 5,000 penalty units; and

(ii) if the court can determine the benefit derived and detriment avoided because of the contravention—that amount multiplied by 3.

Invalid acts

(6) If:

(a) the body corporate is incorporated in Australia; and

(b) a purported external administrator of the body corporate, appointed in contravention of subsection (3), purports to act in relation to the body corporate’s business;

those acts are invalid and of no effect.