Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p20
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 20/110)
Character Range: 203824–206632

receiver, or continue in possession or control, as the case requires, only of specified property of the corporation.

   "(2) However, the Court may only make an order under subsection (1) if satisfied that the objectives for which the controller was appointed, or entered into possession or took control of property of the corporation, as the case requires, have been achieved, so far as is reasonably practicable, except in relation to any property specified in the order under paragraph (1)(b).

   "(3) For the purposes of subsection (2), the Court must have regard to:

      (a) the corporation's interests; and

      (b) the interests of the holder of the charge that the controller is enforcing; and

      (c) the interests of the corporation's other creditors; and

      (d) any other relevant matter.

"(4) The Court may only make an order under subsection (1) on the application of a liquidator appointed for the purposes of winding up the corporation in insolvency.

"(5) An order under subsection (1) may also prohibit the holder of the charge from doing any or all of the following, except with the leave of the Court:

    (a)     appointing a person as receiver of property of the corporation under a power contained in an instrument relating to the charge;

    (b)     entering into possession, or taking control, of such property for the purpose of enforcing the charge;

    (c)     appointing a person so to enter into possession or take control (whether as agent for the chargee or for the corporation).

Effect of sections 434A and 434B

"434C.(1) Except as expressly provided in section 434A or 434B, an order under that section does not affect a charge on property of a corporation.

"(2) Nothing in section 434A or 434B limits any other power of the Court to remove, or otherwise deal with, a controller of property of a corporation (for example, the Court's powers under section 423).".

56. Part 5.3 of the Corporations Law is repealed and the following Part is substituted:

"PART 5.3A—ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT

"Division 1—Preliminary

Object of Part

"435A. The object of this Part is to provide for the business, property and affairs of an insolvent company to be administered in a way that:

    (a)     maximises the chances of the company, or as much as possible of its business, continuing in existence; or

    (b)     if it is not possible for the company or its business to continue in existence—results in a better return for the company's creditors and members than would result from an immediate winding up of the company.

Interpretation

"435B. In this Part, unless the contrary intention appears:

'receiver' includes a receiver and manager.

When administration begins and ends

  "435C.(1)