Section 442CB — Corporations Act 2001: Property subject to a security interest or to a retention of title clause—administrator’s duty of care in exercising power of sale

(1) If the administrator of a company is entitled to dispose of property of the company by way of sale, and the property is subject to a security interest, the administrator must act reasonably in exercising a power of sale in respect of the property. Note: A company’s property includes its PPSA retention of title property (see the definition of property applying to Part 5.3A, in section 435B). (2) If: (a) a company is under administration; and (b) property is used or occupied by, or is in the possession of, the company; and (c) another person is the owner of the property; and (d) the property is subject to a retention of title clause under a contract; and (e) the administrator is entitled to dispose of the property by way of sale; then, in exercising a power of sale in respect of the property, the administrator must act reasonably. (3) Subsections (1) and (2) do not limit section 180, 181, 182, 183 or 184.