Document ID: chunk:federal_register_of_legislation:C2004A04041:section:1990:p139
Version: federal_register_of_legislation:C2004A04041
Segment Type: section
Provision Reference: s 1990 (pt 139/212)
Character Range: 366517–369334

of the holding company; and

     (b) the proposed compromise or arrangement in relation to each subsidiary includes a term that orders will be sought under section 413 transferring the whole of the undertaking and of the property and liabilities of the subsidiary to the holding company; and

   (c) the Court is satisfied, on the application in a summary way:

         (i) of the holding company or of a creditor of the holding company; or

         (ii) if the holding company is being wound up—of the liquidator;

     that the number of meetings that would be required between creditors in order to consider the proposed compromises or arrangements would be so great as to result in a significant impediment to the timely and effective consideration by those creditors of the terms of the compromises or arrangements;

the Court may order a meeting or meetings, on a consolidated basis, of the creditors of the holding company and of each of the subsidiaries or of such class or classes of those creditors as the Court determines and, where the Court makes such an order, the Court may approve the explanatory statement required by paragraph 412 (1) (a) to accompany notices of the meeting or meetings.

  "(1b) Where:

     (a) there are fewer than 30 wholly-owned subsidiaries of the holding company but the matters referred to in paragraphs (1a) (b) and (c) are satisfied; and

     (b) the Court considers that circumstances exist that would justify its doing so;

the Court may make an order under subsection (1a) in relation to the proposed compromise or arrangement.

"(1c) Where an order is made under subsection (1a) in relation to a proposed compromise or arrangement, the succeeding provisions of this Part apply to the compromise or arrangement as if:

SCHEDULE 3—continued

     (a) references in this Part to a company included references to all of the Part 5.1 bodies to which the order relates; and

     (b) references in this Part to creditors of a company included references to the creditors of all the Part 5.1 bodies to which the order relates; and

     (c) references in this Part to a class of the creditors of a company were references to the relevant class of creditors of all of the Part 5.1 bodies to which the order relates.".

Subsections 411 (2) and (4):

  Insert "or (1a)" after "subsection (1)".

Subsection 411 (13):

   (a) Insert "or (1a)" after "subsection (1)" (first occurring).

     (b) Insert "or (1a), as the case may be" after "subsection (1)" (last occurring).

Subparagraph 590 (1) (c) (i):

  Insert "fraudulently" before "concealed".

Subparagraph 590 (1) (c) (v):

  Insert "fraudulently" before "pawned".

Paragraph 590 (1) (d):

  Insert "fraudulently" before "makes".

Subsections 590 (2), (3) and (4):

  Omit the subsections.

Subsection 591 (1):

  Omit