Insolvency Practitioners Regulation Act 2019

66 Restriction on purchase of assets

(1)

This section applies—

(a)

to a person acting as the insolvency practitioner in respect of a company in administration or under a deed of company arrangement, or a company in liquidation, or in respect of the receivership of any property of a company:

(b)

if the insolvency practitioner described in paragraph (a) is a director, an officer, or an employee of a body corporate,—

(i)

to the body corporate:

(ii)

to any other director, officer, or employee of the body corporate:

(c)

if the insolvency practitioner described in paragraph (a) is a partner, an officer, or an employee of a partnership or limited partnership,—

(i)

to the partnership or limited partnership:

(ii)

to any other partner, officer, or employee of the partnership or limited partnership:

(d)

to a member of the creditors’ committee of a company in administration or under a deed of company arrangement:

(e)

to a member of the liquidation committee of a company in liquidation:

(f)

if a person described in any of paragraphs (a) to (e) is a beneficiary or settlor of a trust, to any trustee of the trust.

(2)

A person to whom this section applies must not, without the leave of the court, purchase any part of the assets of the company unless the purchase is on arm’s-length terms.

(3)

A person who fails to comply with subsection (2) commits an offence and is liable on conviction to a fine not exceeding $75,000.

(4)

The court may give leave for the purpose of subsection (2) on the terms and conditions that it thinks fit.

(5)

The court may set aside a purchase that does not comply with subsection (2) and grant the consequential relief that it thinks fit.