Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p38
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 38/110)
Character Range: 249788–252548

a receiver of property of the company for the purpose of enforcing the charge; or

         (iii) enters into possession, or assumes control, of property of the company for that purpose; or

         (iv) appoints a person so to enter into possession or assume control (whether as agent for the chargee or for the company);

the right of indemnity of the administrator under section 443D has priority over those debts only in so far as it is a right of indemnity for debts incurred, or remuneration accruing, before written notice of the appointment, or of the entering into possession or assuming of control, as the case may be, was given to the administrator.

Lien to secure indemnity

"443F.(1) To secure a right of indemnity under section 443D, the administrator has a lien on the company's property.

"(2) A lien under subsection (1) has priority over a charge only in so far as the right of indemnity under section 443D has priority over debts secured by the charge.

"Division 10—Execution and effect of deed of company arrangement

Effect of creditors' resolution

"444A.(1) This section applies where, at a meeting convened under section 439A, a company's creditors resolve that the company execute a deed of company arrangement.

"(2) The administrator of the company is to be the administrator of the deed, unless the creditors, by resolution passed at the meeting, appoint someone else to be administrator of the deed.

"(3) The administrator of the deed must prepare an instrument setting out the terms of the deed.

  "(4) The instrument must also specify the following:

  (a)     the administrator of the deed;

    (b)     the property of the company (whether or not already owned by the company when it executes the deed) that is to be available to pay creditors' claims;

    (c)     the nature and duration of any moratorium period for which the deed provides;

  (d)     to what extent the company is to be released from its debts;

  (e)     the conditions (if any) for the deed to come into operation;

  (f)      the conditions (if any) for the deed to continue in operation;

  (g)     the circumstances in which the deed terminates;

     (h) the order in which proceeds of realising the property referred to in paragraph (b) are to be distributed among creditors bound by the deed;

     (i) the day (not later than the day when the administration began) on or before which claims must have arisen if they are to be admissible under the deed.

"(5) The instrument is taken to include the prescribed provisions, except so far as it provides otherwise.

Execution of deed

"444B.(1) This section applies where an instrument is prepared under section 444A.

  "(2) The company must execute the instrument within:

  (a)     21 days