Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p80
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 80/110)
Character Range: 355036–357983

by inserting in subsection (1) "before the commencement of Part 5.7B," after "incurred,";

    (b)    by omitting paragraphs (2)(a) and (b) and substituting the following paragraphs:

         "(a) if the company was under official management at any time during the 6 months ending on the relation-back day—the day on which the official management commenced; or

      (b) otherwise—the relation-back day.";

    (c)     by omitting from subsection (3) everything after "bankrupt is" and substituting "the relation-back day.";

    (d)    by omitting from subsection (4) "Any" and substituting "Subject to Part 5.3A, a".

Effect of floating charge

105. Section 566 of the Corporations Law is amended by omitting "within 6 months before the commencement of the winding up" and substituting "before the commencement of Part 5.7B and within 6 months before the relation-back day".

Liquidator's right to recover in respect of certain transactions

  106. Section 567 of the Corporations Law is amended:

    (a)     by omitting from subsections (1) and (2) "within a period of 4 years before the commencement of the" and substituting "before the commencement of Part 5.7B and within 4 years before the relation-back day in relation to a";

    (b)    by omitting from paragraph (5)(a) "within the period of 6 months before the commencement of the" and substituting "before the commencement of Part 5.7B and within 6 months before the relation-back day in relation to a".

Insertion of heading

107. Before section 568 of the Corporations Law the following heading is inserted:

"Division 7A—Disclaimer of onerous property".

Disclaimer by liquidator; application to Court by party to contract

  108. Section 568 of the Corporations Law is amended:

    (a) by omitting subsections (1), (2), (3), (4), (5), (6) and (7) and substituting the following subsections:

     "(1) Subject to this section, a liquidator of a company may at any time, on the company's behalf, by signed writing disclaim property of the company that consists of:

      (a)     land burdened with onerous covenants; or

      (b)     shares; or

      (c)     property that is unsaleable or is not readily saleable; or

        (d)     property that may give rise to a liability to pay money or some other onerous obligation; or

        (e)     property where it is reasonable to expect that the costs, charges and expenses that would be incurred in realising the property would exceed the proceeds of realising the property; or

       (f) a contract;

     whether or not:

         (g) except in the case of a contract—the liquidator has tried to sell the property, has taken possession of it or exercised an act of ownership in relation to it; or

        (h) in the case of a contract—the company or the liquidator has tried to assign, or has exercised rights in relation to, the contract or any property to which it relates.

     "(1A) A liquidator cannot disclaim