Document ID: chunk:federal_register_of_legislation:C2025C00185:section:579e:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 579E (pt 2/3)
Character Range: 1944105–1946651

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 of 2 or more companies; and
 (b) a secured creditor of a company in the group surrenders the relevant security interest to the liquidator of the company for the benefit of creditors of the companies in the group generally;
the debt may be recovered as a debt that is jointly and severally payable by the companies in the group.
 (7) If:
 (a) a pooling order comes into force in relation to a group of 2 or more companies; and
 (b) a secured creditor of a company in the group realises the security interest;
so much of the debt as remains after deducting the net amount realised may be recovered as a debt that is jointly and severally payable by the companies in the group.
 (8) The following provisions have effect subject to any modifications under paragraph 579G(1)(d):
 (a) subsection (2);
 (b) subsection (3);
 (c) subsection (4);
 (d) subsection (5);
 (e) subsection (6);
 (f) subsection (7).
 (9) Subsection (2) does not apply in relation to a secured creditor unless the relevant debt is payable by a company or companies in the group to any other company or companies in the group.
 (10) The Court must not make a pooling order in relation to a group of 2 or more companies if:
 (a) both:
 (i) the Court is satisfied the order would materially disadvantage an eligible unsecured creditor of a company in the group; and
 (ii) the eligible unsecured creditor has not consented to the making of the order; or
 (b) all of the following conditions are satisfied:
 (i) a company in the group is being wound up under a members' voluntary winding up;
 (ii) the Court is satisfied that the order would materially disadvantage a member of that company;
 (iii) the member is not a company in the group;
 (iv) the member has not consented to the making of the order.
Note: For eligible unsecured creditor, see section 579Q.

Standing
 (11) The Court may only make a pooling order on the application of the liquidator or liquidators of the companies in the group.

Just and equitable criteria
 (12) In determining whether it is just and equitable to make a pooling order, the Court must have regard to all of the following matters:
 (a) the extent to which:
 (i) a company in the group; and
 (ii) the officers or employees of a company in the group;
  were involved in the management or operations of any of the other companies in the group;