Voluntary Administration

Personal Property Securities Act 2009 and voluntary administrations

In the event of a voluntary administrator being appointed to the company under Part 5.3A, section 440B of the Corporations Act 2001 imposes restrictions on:

  • an owner of property used by the company from taking possession of or recovering the property

  • a lessor from levying distress rent, taking possession, or otherwise recovering the property

  • a secured party with possessory security from selling the property or otherwise enforcing the security interest.

The voluntary administrator may still sell or dispose of assets:

  • with the consent of the secured party

  • with the consent of the Court

  • in the ordinary course of business.

Any disposal made by the voluntary administrator requires the sale proceeds from the secured property to be distributed to those holding relevant security interests.

Disclaimer

The enclosed information is of necessity a brief overview and it is not intended that readers should rely wholly on the information contained herein. No warranty express or implied is given in respect of the information provided and accordingly no responsibility is taken by Worrells or any member of the firm for any loss resulting from any error or omission contained within this fact sheet.

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