68Appointment and powers of administrator of funeral contribution fund

68 Appointment and powers of administrator of funeral contribution fund

68 Appointment and powers of administrator of funeral contribution fund

(1) Subject to this Division and with the approval of the Minister, the Secretary may, by instrument in writing, appoint an administrator to administer the affairs of a funeral contribution fund if—

(a) the fund has failed to provide any funeral benefit it had agreed to provide and the Secretary has reason to believe that further failures of that kind will occur,

(b) after being notified by the Secretary of any contravention of a provision of this Act, of the regulations or of the Corporations Act 2001 of the Commonwealth that is applicable to it, the fund has failed to remedy the contravention to the extent that it is capable of remedy, or has committed a further contravention of the provision, or

(c) following an inquiry into the affairs of the fund under Division 2 or following an investigation under Part 3 of the Australian Investments and Securities Commission Act 2001 of the Commonwealth, the Secretary is of the opinion that, in the interests of—

(i) contributors to the fund, or

(ii) creditors of the fund,

an administrator ought to be appointed to conduct the affairs of the fund.

(2) On the appointment of an administrator under subsection (1), the Secretary shall serve on the funeral contribution fund a copy of the instrument of the appointment and thereupon—

(a) the affairs of the fund shall be administered by the administrator until the administrator’s appointment is terminated under this Division,

(b) the administrator shall assume and be responsible for the management of the fund and shall perform all of the duties and may perform any of the functions and exercise any of the powers of the directors of the fund,

(c) the directors of the fund shall cease to hold office,

(d) any delegation made by the directors shall cease to have effect, and

(e) all contracts of service and for the performance of services (including a contract with an undertaker for the supply of funeral services) entered into by or on behalf of the fund shall terminate.