Document ID: chunk:federal_register_of_legislation:C2008A00105:clause:3_62z
Version: federal_register_of_legislation:C2008A00105
Segment Type: clause
Provision Reference: sch 3 cl 62Z
Character Range: 122634–124648

62Z  Judicial manager's additional powers to facilitate recapitalisation

Powers

 (1) A judicial manager of a general insurer that is a company that has a share capital and is registered under the Corporations Act 2001 may do one or more of the following acts on terms determined by the judicial manager:
 (a) issue shares, or rights to acquire shares, in the company;
 (b) cancel shares, or rights to acquire shares, in the company;
 (c) reduce the company's share capital by cancelling any paid‑up share capital that is not represented by available assets;
 (d) sell shares, or rights to acquire shares, in the company;
 (e) vary or cancel rights or restrictions attached to shares in a class of shares in the company.

Note: Before doing such an act, the judicial manager will usually need to get and consider a report on the fair value of each share or right concerned (see section 62ZA), and will need to report to the Federal Court and obtain the court's order for the act (see sections 62ZI and 62ZJ).

Giving company members notice of exercise of powers

 (2) As soon as practicable after doing an act described in paragraph (1)(a), (b), (c) or (e) or subsection (3), the judicial manager must give written notice to the persons who were members (under section 231 of the Corporations Act 2001) of the company just before the act, identifying the act and explaining its effect on their interests as members.

 (3) One of the acts to which subsection (2) relates is the offering of shares, or rights to acquire shares, in the company for sale under paragraph (1)(d).

Exercise of powers despite other laws etc.

 (4) A judicial manager may do an act under subsection (1) despite:
 (a) the Corporations Act 2001; and
 (b) the company's constitution; and
 (c) any contract or arrangement to which the company is party; and
 (d) any listing rules (as defined in section 761A of the Corporations Act 2001) of a financial market (as defined in that section) in whose official list the company is included.