Document ID: chunk:federal_register_of_legislation:C2025C00185:section:415d:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 415D (pt 1/3)
Character Range: 1419221–1421912

415D  Stay on enforcing rights merely because of a proceeding under this Part etc.

Stay on enforcing rights
 (1) A right cannot be enforced against a body for:
 (a) the reason that the body, if it is a disclosing entity, has publicly announced that it will be making an application under section 411 for the purpose of avoiding being wound up in insolvency; or
 (b) the reason that the body is the subject of an application under section 411; or
 (c) the reason that the body is the subject of a compromise or arrangement approved under this Part as a result of an application under section 411; or
 (d) the body's financial position, if the body is the subject of such an announcement, application, compromise or arrangement; or
 (e) a reason, prescribed by the regulations for the purposes of this paragraph, that relates to:
 (i) the making, or possible making, of such an announcement, application, compromise or arrangement about the body; or
 (ii) the body's financial position;
  if such an announcement, application, compromise or arrangement is later made about the body; or
 (f) a reason that, in substance, is contrary to this subsection;
if the right arises for that reason by express provision (however described) of a contract, agreement or arrangement.
Note: This result is subject to subsections (5), (6) and (8), and to any order under section 415E.
Example: A right to terminate a contract will not be enforceable to the extent that those rights are triggered by the body becoming the subject of such an announcement, application, compromise or arrangement.

Period of the stay
 (2) The right cannot be enforced as described in subsection (1) during the period (the stay period) that:
 (a) starts:
 (i) if the body makes an announcement referred to in paragraph (1)(a)—when the announcement is made; or
 (ii) otherwise—when the application under section 411 is made; and
 (b) ends:
 (i) if the body makes an announcement referred to in paragraph (1)(a), and fails to make the announced application within the next 3 months or within any period ordered under subsection (3) for the body—at the end of the longer of those periods; or
 (ii) when the application under section 411 is withdrawn or when the Court dismisses the application; or
 (iii) unless subparagraph (iv) applies—at the end of any compromise or arrangement approved under this Part as a result of the application under section 411; or
 (iv) if such a compromise or arrangement ends because of a resolution or order for the body to be wound up—when the body's affairs have been fully wound up.
 (3) The Court may order a longer period than the 3 months otherwise applying under subparagraph (2)(b)(i) for the