22Sale by transfer of assets of Trust to company

22 Sale by transfer of assets of Trust to company

(1) An agreement entered into in accordance with section 20 may make provision for the sale to which the agreement relates to be carried into effect in accordance with this section and, in that case, the following provisions of this section have effect. (2) The Trust shall: (a) form, together with such person or persons as the Minister nominates, an incorporated company in the Australian Capital Territory under a name approved by the Minister, being a company having such directors as the Minister nominates and having a share capital all the shares in which are beneficially owned by the Trust; and (b) on the day referred to in the agreement in accordance with subsection 20(1), upon receipt of the consideration specified in the agreement: (i) transfer to the company such of the rights, property or assets of the Trust as are required by the agreement to be acquired by the purchaser; and (ii) cause the shares in the company to be transferred to the purchaser or to a person or persons nominated by the purchaser. (3) Upon the transfer to the company of the rights, property or assets referred to in subparagraph (2)(b)(i), the company becomes, by force of this subsection, liable to pay or discharge such debts, liabilities or obligations of the Trust as are required by the agreement to be paid or discharged by the purchaser and the Trust ceases to be liable to pay or discharge those debts, liabilities or obligations. (4) If the company becomes, by force of subsection (3), liable to pay or discharge any debts, liabilities or obligations of the Trust arising under or by virtue of the Compensation (Commonwealth Government Employees) Act 1971, then, for the purposes of the application, in relation to any event that occurred before the day referred to in the agreement in accordance with subsection 20(1), of that Act in relation to a person who, at any time before that day, was an employee within the meaning of that Act by virtue of being, or having been, employed by the Trust, the company shall be deemed to be the prescribed authority of the Commonwealth in relation to that employee.