Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p41
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 41/110)
Character Range: 257305–260191

be adequately protected.

  "(6) An order under this section may be made subject to conditions.

"(7) An order under this section may only be made on the application of:

     (a)     if paragraph (1)(a) applies—the administrator of the company; or

   (b)     if paragraph (1)(b) applies—the deed's administrator.

Effect of deed on company, officers and members

  "444G. A deed of company arrangement also binds:

  (a)     the company; and

  (b)     its officers and members; and

  (c)     the deed's administrator.

Extent of release of company's debts

"444H. A deed of company arrangement releases the company from a debt only in so far as:

  (a)     the deed provides for the release; and

  (b)     the creditor concerned is bound by the deed.

"Division 11—Variation, termination and avoidance of deed

Variation of deed by creditors

"445A. A deed of company arrangement may be varied by a resolution passed at a meeting of the company's creditors convened under section 445F, but only if the variation is not materially different from a proposed variation set out in the notice of the meeting.

Court may cancel variation

"445B.(1) Where a deed of company arrangement is varied under section 445A, a creditor of the company may apply to the Court for an order cancelling the variation.

  "(2) On an application, the Court:

    (a)     may make an order cancelling the variation, or confirming it, either wholly or in part, on such conditions (if any) as the order specifies; and

  (b)     may make such other orders as it thinks appropriate.

When deed terminates

  "445C. A deed of company arrangement terminates when:

    (a)     the Court makes under section 445D an order terminating the deed; or

    (b)     the company's creditors pass a resolution terminating the deed at a meeting that was convened under section 445F by a notice setting out the proposed resolution; or

    (c)     if the deed specifies circumstances in which it is to terminate— those circumstances exist;

whichever happens first.

When Court may terminate deed

"445D.(1) The Court may make an order terminating a deed of company arrangement if satisfied that:

     (a) information about the company's business, property, affairs or financial circumstances that:

       (i) was false or misleading; and

         (ii) can reasonably be expected to have been material to creditors of the company in deciding whether to vote in favour of the resolution that the company execute the deed;

     was given to the administrator of the company or to such creditors; or

     (b)     such information was contained in a report or statement under subsection 439A(4) that accompanied a notice of the meeting at which the resolution was passed; or

     (c)     there was an omission from such a report or statement and the omission can reasonably be expected to have been material to such