Document ID: chunk:federal_register_of_legislation:C2016A00011:schedule:2:p1
Version: federal_register_of_legislation:C2016A00011
Segment Type: schedule
Provision Reference: sch 2 (pt 1/71)
Character Range: 221459–224483

Schedule 2—Insolvency Practice Schedule (Corporations)
Note: See section 600K.

Part 1—Introduction

Division 1—Introduction

1‑1  Object of this Schedule
 (1) The object of this Schedule is to ensure that any person registered as a liquidator:
 (a) has an appropriate level of expertise; and
 (b) behaves ethically; and
 (c) maintains sufficient insurance to cover his or her liabilities in practising as a registered liquidator.
 (2) The object of this Schedule is also:
 (a) to regulate the external administration of companies consistently, unless there is a clear reason to treat a matter that arises in relation to a particular kind of external administration differently; and
 (b) to regulate the external administration of companies to give greater control to creditors.

1‑5  Simplified outline of this Schedule

      Registering liquidators
      Under this Act, only a registered liquidator can perform certain roles, such as that of the receiver of the property of a corporation, the administrator of a company or of a deed of company arrangement, or the liquidator or provisional liquidator of a company.
      Part 2 of this Schedule sets out the process for registering liquidators, and also deals with disciplining registered liquidators.
      Consistently regulating the external administration of companies
      Part 3 of this Schedule sets out provisions to regulate the external administration of companies consistently.
      A company is under external administration if the company is under administration, is the subject of a deed of company arrangement or has had a liquidator or provisional liquidator appointed in relation to it. A company is not under external administration merely because a person has been appointed as a receiver, receiver and manager or other controller in relation to the property of the company.
      Other provisions
      There are other matters relevant to the external administration of a company regulated in Chapter 5.
      This Schedule also gives authority for a legislative instrument, the Insolvency Practice Rules, to deal with some matters.
      Many of the terms in this Schedule are defined. The Dictionary in section 5‑5 contains a list of every term that is defined in this Schedule. Other terms are defined in section 9 of this Act.

Division 5—Definitions

Subdivision A—Introduction

5‑1  Simplified outline of this Division

      Terms used in this Schedule are defined in the Dictionary. In some cases, the definition is a signpost to another provision of the Schedule in which the meaning of the term is explained.
      Some of the key terms, the meaning of which is explained in this Division, are external administration of a company and external administrator of a company.

Subdivision B—The Dictionary

5‑5  The Dictionary
  In this Schedule:
adequate and appropriate fidelity insurance has a meaning affected by subsection 25‑1(2).
adequate and appropriate professional indemnity insurance has a meaning affected by subsection 25‑1(2).