Bankruptcy Act 1966

This section applies if a creditor representing at least 10% in value of the creditors of a regulated debtor’s estate appoints a person under section 80‑20 as a member of a committee of inspection in relation to the administration of the estate.

The creditor must not directly or indirectly become the purchaser of any part of the regulated debtor’s estate.

Subsection (2) does not apply if the creditors resolve otherwise.

The creditor is not entitled to vote on the resolution referred to in subsection (3).

Subsection (2) does not apply to the extent that:

another provision of this Act, or of another law, requires or permits the creditor to purchase the property; or

the Court gives leave to the creditor to purchase the property.

A person commits an offence of strict liability if:

the person is subject to a requirement under subsection (2); and

the person fails to comply with the requirement.

A defendant bears an evidential burden in relation to the matters in subsections (3) and (5) (see subsection 13.3(3) of the Criminal Code).

A transaction or any other arrangement entered into in contravention of this section may be set aside by the Court.