Document ID: chunk:federal_register_of_legislation:C2007A00132:clause:1_571:p1
Version: federal_register_of_legislation:C2007A00132
Segment Type: clause
Provision Reference: sch 1 cl 571 (pt 1/2)
Character Range: 87108–89725

571  Pooling determination

Making of pooling determination

 (1) If the following conditions are satisfied in relation to a group of 2 or more companies:
 (a) each company in the group is being wound up;
 (b) any of the following subparagraphs applies:
 (i) each company in the group is a related body corporate of each other company in the group;
 (ii) apart from this section, the companies in the group are jointly liable for one or more debts or claims;
 (iii) the companies in the group jointly own or operate particular property that is or was used, or for use, in connection with a business, a scheme, or an undertaking, carried on jointly by the companies in the group;
 (iv) one or more companies in the group own particular property that is or was used, or for use, by any or all of the companies in the group in connection with a business, a scheme, or an undertaking, carried on jointly by the companies in the group;
the liquidator or liquidators of the companies may, by writing:
 (c) determine that the group is a pooled group for the purposes of this section; and
 (d) if the liquidator or liquidators consider that it is just and equitable, as between the various creditors of the companies in the group, to do so—determine that any or all of the following provisions:
 (i) subsection (2);
 (ii) subsection (3);
 (iii) subsection (4);
 (iv) subsection (5);
 (v) subsection (6);
 (vi) subsection (7);
  are modified, as set out in the determination, in their application to the companies in the group.

Note 1: Section 9 provides that pooling determination means a determination under subsection (1) of this section.

Note 2: A pooling determination comes into force when it is approved by the eligible unsecured creditors of each of the companies in the group—see section 578.

Consequences of pooling determination

 (2) If a determination under paragraph (1)(c) comes into force in relation to a group of 2 or more companies:
 (a) each company in the group is taken to be jointly and severally liable for each debt payable by, and each claim against, each other company in the group; and
 (b) each debt payable by a company or companies in the group to any other company or companies in the group is extinguished; and
 (c) each claim that a company or companies in the group has against any other company or companies in the group is extinguished.

 (3) Subsection (2) applies to a debt or claim:
 (a) whether present or future; and
 (b) whether certain or contingent; and
 (c) whether ascertained or sounding only in damages.

 (4) Subsection (2) does not apply to a debt payable by, or a claim