227I. Agency and liability for contracts

Question 1

227I. Agency and liability for contracts

Answer 1

General overview
[227I.01] Whilst a receiver and manager will become the agent of the company pursuant to the terms of the debenture, s 227I(1)(a) specifically provides that a judicial manager is an agent of the company. As such, the company is bound by the judicial manager’s acts on behalf of the company subject to s 227H. The normal agency rules would thus apply.