60Appointment and powers of administrator

60 Appointment and powers of administrator

60 Appointment and powers of administrator

(1) Subject to this Division and with the approval of the Minister, the Supervisor may, by instrument in writing, appoint an administrator to administer the affairs and activities of a loan fund company if:

(a) the company has suspended business for a period of more than 2 months,

(b) after being notified by the Supervisor of any contravention of or failure to comply with a provision of this Act, of the Companies (New South Wales) Code or of the Companies Act 1961 that is applicable to it, the company 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 the failure to comply has continued, or

(c) following an inquiry into the affairs of the company under Division 2 or following an investigation under Part 6A of the Companies Act 1961 or under Part VII of the Companies (New South Wales) Code, the Supervisor is of the opinion that, in the interests of:

(i) members,

(ii) holders of options to acquire loan entitlement shares in the company, or

(iii) creditors of the company,

an administrator ought to be appointed to conduct the affairs and activities of the company.

(2) On the appointment of an administrator under subsection (1), the Supervisor shall serve on the loan fund company a copy of the instrument of the appointment and thereupon:

(a) the affairs and activities of the company 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 company 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 company,

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

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