Document ID: chunk:federal_register_of_legislation:C2025C00185:section:571:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 571 (pt 2/2)
Character Range: 1927946–1930170

companies in the group is extinguished.
 (3) Subsection (2) applies to a debt or claim:
 (a) whether present or future; and
 (b) whether certain or contingent; and
 (c) whether ascertained or sounding only in damages.
 (4) Subsection (2) does not apply to a debt payable by, or a claim against, a company in the group unless the debt or claim is admissible to proof against the company.
 (5) If a determination under paragraph (1)(c) comes into force in relation to a 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 determination under paragraph (1)(c) 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 determination under paragraph (1)(c) 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 (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) If:
 (a) a pooling determination comes into force in relation to a group of 2 or more companies; and
 (b) there are one or more eligible employee creditors of a company in the group;
those eligible employee creditors are entitled to a priority at least equal to what they would have been entitled if the determination had not been made.

Section 477 not limited
 (11) This section does not limit section 477.