Section 420C — Corporations Act 2001: Receiver’s power to carry on corporation’s business during winding up

(1) A receiver of property of a corporation that is being wound up may: (a) with the written approval of the corporation’s liquidator or with the approval of the Court, carry on the corporation’s business either generally or as otherwise specified in the approval; and (b) do whatever is necessarily incidental to carrying on that business under paragraph (a). (2) Subsection (1) does not: (a) affect a power that the receiver has otherwise than under that subsection; or (b) empower the receiver to do an act that he or she would not have power to do if the corporation were not being wound up. (3) A receiver of property of a corporation who carries on the corporation’s business under subsection (1) does so: (a) as agent for the corporation; and (b) in his or her capacity as receiver of property of the corporation. (4) The consequences of subsection (3) include, but are not limited to, the following: (a) for the purposes of subsection 419(1), a debt that the receiver incurs in carrying on the business as mentioned in subsection (3) of this section is incurred in the course of the receivership; (b) a debt or liability that the receiver incurs in so carrying on the business is not a cost, charge or expense of the winding up.