Document ID: chunk:federal_register_of_legislation:C2025C00185:section:843a:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 843A (pt 1/2)
Character Range: 3337139–3339744

843A  Stay on enforcing rights merely because the body corporate is under statutory management or subject to a transfer determination

Stay on enforcing rights
 (1) A right cannot be enforced against a body corporate for:
 (a) the reason that:
 (i) the body corporate has come or is under statutory management; or
 (ii) the Reserve Bank makes or has made a determination under section 837A that there is to be a transfer of shares in the body corporate; or
 (iii) the Reserve Bank makes or has made a determination under section 837B that there is to be a transfer of business of the body corporate; or
 (iv) the Reserve Bank gives or has given a direction to the body corporate under subsection 840A(1); or
 (b) the reason of the body corporate's financial position; or
 (c) a reason that, in substance, is contrary to this subsection or subsection (2) of this section;
if the right arises for that reason by express provision (however described) of an arrangement.
Note: This result is subject to sections 843B and 843C.
Example: A right to terminate a contract will not be enforceable to the extent that those rights are triggered by the body corporate coming under statutory management.
 (2) A right cannot be enforced against a body corporate for a reason that:
 (a) is prescribed by the regulations for the purposes of this paragraph; and
 (b) relates to:
 (i) section 842A applying, or possibly applying, to the body corporate in the future; or
 (ii) the body corporate's financial position;
if the right arises for that reason by express provision (however described) of an arrangement.
Note: This result is subject to sections 843B and 843C.
 (3) However, subsection (2) does not apply at a time if section 842A does not later apply to the body corporate.

Period of the stay
 (4) The right cannot be enforced as described in subsection (1) during the period (the stay period):
 (a) starting when section 842A begins to apply to the body corporate; and
 (b) ending at the latest of the following times:
 (i) when section 842A ceases to apply to the body corporate;
 (ii) if one or more orders are made under subsection (6) of this section for the body corporate as the result of an application made before section 842A ceases to apply to the body corporate—when the last made of those orders ceases to be in force.
 (5) The right cannot be enforced as described in subsection (2) of this section during a period (the stay period) ending at the latest of the following times:
 (a) when section 842A ceases to apply to the body corporate;
 (b) if one or more orders are made under subsection (6) of