The Receiverships Amendment Act 2001 introduces a number of amendments to the Receiverships Act 1993 which come into force on 1 May 2002. The amendments are due in part to the coming into effect of the Personal Property Securities Act 1999 on 1 May 2002.
The amendments include:
an amendment to section 28 making it an obligation for receivers to report suspected offences by the company or a director, including offences under the Crimes Act 1961, when the offence is material to the receivership and establishing that the report and related communications are protected by absolute privilegean amendment to section 30 providing that a receiver appointed under a security over the company's accounts receivable or inventory, which is not a purchase money security interest or a factoring agreement, must apply the proceeds of accounts receivable and inventory that are subject to the security interest firstly to his or her expenses and remuneration, and secondly in the order of priority as specified in the seventh schedule of the Companies Act 1993 (as amended to come into effect on 1 May 2002), andThe insertion of a new section 30A providing for the extinguishment of all subordinate security interests in property and its proceeds on the disposition of that property by a receiver.This is a general summary only and should not be taken as a substitute for specific advice.
For further information contact Michael Bos:
michael.bos@phillipsfox.com
Web site:
Phillips Fox