Document ID: chunk:federal_register_of_legislation:C2007A00132:clause:1_579e:p1
Version: federal_register_of_legislation:C2007A00132
Segment Type: clause
Provision Reference: sch 1 cl 579E (pt 1/3)
Character Range: 105427–107915

579E  Pooling orders

Making of pooling order

 (1) If it appears to the Court that 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 Court may, if the Court is satisfied that it is just and equitable to do so, by order, determine that the group is a pooled group for the purposes of this section.

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

Note 2: See also subsection (12) (just and equitable criteria).

Consequences of pooling order

 (2) If a pooling order 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.

Note: For exemptions, see paragraph 579G(1)(a).

 (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 against, a company in the group unless the debt or claim is admissible to proof against the company.

 (5) If a pooling order comes into force in relation to a group of 2 or more companies, the order of priority applicable under sections 556, 560 and 561 is not altered for a company in the group.

 (6) If:
 (a) a pooling order comes into force in relation to a group