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Wednesday, 13 May 1981
Page: 2341

Mr JACOBI(9.3) —I will not delay the Committee on this clause. Clause 324, as I understand it, establishes no duty of care for the receiver. I have the New Zealand Companies Amendment Act . I seek leave of the Committee to have part of new section 345B of the Act incorporated in Hansard.

Leave granted.

The section read as follows-

It provides that a receiver or manager of the property of a company who sells any of that property shall exercise all reasonable care to obtain the best price reasonably obtainable as at the time of sale. This duty is expressed to be one that is owed by the receiver to the company; and it is not to be a defence to any action or proceeding brought by the company against the receiver or manager in respect of a breach of that duty that the receiver or manager was acting as the agent of the company, or under a power of attorney given by the company. Neither is the receiver or manager entitled to be indemnified or compensated by the company for any liability he may incur as a result of the breach of his duty.

Mr JACOBI —I suggest to the Minister for Business and Consumer Affairs (Mr Moore) that that section be included in the Bill which we are presently debating. I request that this suggestion go to the Ministerial Council for consideration.

Clause agreed to.

Clauses 325 to 357-by leave-taken together, and agreed to.

Clauses 358 to 474-by leave-taken together.