—(1) Subject to this section, a person shall not, except with the leave of the Court, consent to be appointed, and shall not act as liquidator of a company —
if he is not an approved liquidator;
if he is indebted to the company or to a corporation that is deemed to be related to the company by virtue of section 6 in an amount exceeding $2,500;
if he is —
an officer of the company;
a partner, employer or employee of an officer of the company; or
a partner or employee of an employee of an officer of the company;
if he is an undischarged bankrupt;
if he has assigned his estate for the benefit of his creditors or has made an arrangement with his creditors pursuant to any law relating to bankruptcy; or
if he has been convicted of an offence involving fraud or dishonesty punishable on conviction by imprisonment for 3 months or more.
(2) Subsection (1)(a) and (c) shall not apply —
to a members’ voluntary winding up; or
to a creditors’ voluntary winding up, if by a resolution carried by a majority of the creditors in number and value present in person or by proxy and voting at a meeting of which 7 days’ notice has been given to every creditor stating the object of the meeting, it is determined that that paragraph shall not so apply.
(3) For the purposes of subsection (1), a person shall be deemed to be an officer of a company if he is an officer of a corporation that is deemed to be related to the company by virtue of section 6 or has, at any time within the preceding period of 24 months, been an officer or promoter of the company or of such a corporation.
(4) A person shall not be appointed as liquidator of a company unless he has prior to such appointment consented in writing to act as such liquidator.
(5) Nothing in this section shall affect any appointment of a liquidator made before 29th December 1967.
(6) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000.
[Aust., 1961, s. 10]