93Statutory manager takes control of body corporate

93 Statutory manager takes control of body corporate

(1) The Reserve Bank may take either or both of the actions in subsection (2), if the Reserve Bank reasonably believes that the action is appropriate to manage or respond to a condition in section 90 being satisfied in relation to a designated entity.

(2) The actions are:

(a) taking control of the business of the designated entity as statutory manager of the designated entity; and

(b) appointing one or more persons to take control of the business of the designated entity, as statutory manager of the designated entity.

Note: Section 109 deals with when there are 2 or more statutory managers of a body corporate (for example, when the Reserve Bank decides that both itself and another person are to take control as statutory manager).

(3) The Reserve Bank may take either or both of the actions in subsection (4), if:

(a) a statutory manager has taken control of the business of a designated entity, or the Reserve Bank intends that a statutory manager will take control of the business of a designated entity; and

(b) the Reserve Bank reasonably believes that the action is appropriate to manage or respond to a condition in section 90 being satisfied in relation to the designated entity.

(4) The actions are:

(a) taking control of the business of a related body corporate of the designated entity, that is incorporated in Australia, as statutory manager of the related body corporate; and

(b) appointing one or more persons to take control of the business of a related body corporate of the designated entity, that is incorporated in Australia, as statutory manager of the related body corporate.

Note: Section 109 deals with when there are 2 or more statutory managers of a body corporate (for example, when the Reserve Bank decides that both itself and another person are to take control as statutory manager).

(5) If the Reserve Bank decides to take an action under subsection (1) or (3), the Reserve Bank must give the following, in writing, notice that a statutory manager will take, or is taking, control of the body corporate’s business:

(a) the body corporate;

(b) if the body is under external administration—the external administrator;

(c) the ACCC.

Note: The appointment of the external administrator is terminated when a statutory manager takes control of the body corporate’s business: see section 108.

Limits on individual exercise of powers

(6) At the time a statutory manager (other than the Reserve Bank) is appointed, the Reserve Bank may give the statutory manager a notice, in writing, specifying any limits or conditions on the manager performing functions or exercising powers individually.