Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p40
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 40/110)
Character Range: 254792–257561

of the resolution of creditors because of which the company executed the deed; or

  (b)     the Court orders under subsection 444F(4).

Protection of company's property from persons bound by deed

"444E.(1) Until a deed of company arrangement terminates, this section applies to a person bound by the deed.

  "(2) The person cannot:

  (a)     make an application for an order to wind up the company; or

    (b)     proceed with such an application made before the deed became binding on the person.

  "(3) The person cannot:

    (a)     begin or proceed with a proceeding against the company or in relation to any of its property; or

    (b)     begin or proceed with enforcement process in relation to property of the company;

except:

  (c)     with the leave of the Court; and

  (d)     in accordance with such terms (if any) as the Court imposes.

  "(4) In subsection (3):

'property', in relation to the company, includes property used or occupied by, or in the possession of, the company.

Court may limit rights of secured creditor or owner or lessor

  "444F.(1) This section applies where:

     (a)     it is proposed that a company execute a deed of company arrangement; or

   (b)     a company has executed such a deed.

"(2) Subject to subsection 441A(3), the Court may order a secured creditor of the company not to realise or otherwise deal with the security, except as permitted by the order.

"(3) The Court may only make an order under subsection (2) if satisfied that:

     (a)     for the creditor to realise or otherwise deal with the security would have a material adverse effect on achieving the purposes of the deed; and

   (b)     having regard to:

       (i) the terms of the deed; and

       (ii) the terms of the order; and

      (iii) any other relevant matter;

     the creditor's interests will be adequately protected.

"(4) The Court may order the owner or lessor of property that is used or occupied by, or is in the possession of, the company not to take possession of the property or otherwise recover it.

"(5) The Court may only make an order under subsection (4) if satisfied that:

     (a)     for the owner or lessor to take possession of the property or otherwise recover it would have a material adverse effect on achieving the purposes of the deed; and

   (b)     having regard to:

       (i) the terms of the deed; and

       (ii) the terms of the order; and

      (iii) any other relevant matter;

     the interests of the owner or lessor will be adequately protected.

  "(6) An order under this section may be made subject to conditions.

"(7) An order under this section may only be made on the application of:

     (a)     if paragraph (1)(a) applies—the administrator of the company; or

   (b)