Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p31
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 31/60)
Character Range: 260725–263556

done, in good faith and without negligence in the exercise or performance, or the purported exercise or performance, of powers, functions or duties under the Act or these regulations relating to the plan.

5.3B.43  Right of indemnity
  A person who is or has been the restructuring practitioner for a company's restructuring plan is entitled to be indemnified out of the company's property (other than any PPSA retention of title property subject to a PPSA security interest that is perfected within the meaning of the Personal Property Securities Act 2009) for:
 (a) any debts or liabilities incurred, or damages or losses sustained, in good faith and without negligence, by the restructuring practitioner:
 (i) in the performance or purported performance of the restructuring practitioner's functions or duties; or
 (ii) in the exercise or purported exercise of the restructuring practitioner's powers; and
 (b) the remuneration to which the restructuring practitioner is entitled under Insolvency Practice Rules made under Subdivision DA of Division 60 of Schedule 2 to the Act.

5.3B.44  Right of indemnity has priority over other debts

General rule
 (1) Subject to section 556 of the Act, a right of indemnity under regulation 5.3B.43 has priority over:
 (a) all the company's unsecured debts; and
 (b) any debts of the company secured by a PPSA security interest in property of the company if, when the restructuring of the company begins, the security interest is vested in the company because of the operation of any of the following provisions:
 (i) section 267 or 267A of the Personal Property Securities Act 2009 (property subject to unperfected security interests);
 (ii) section 588FL of the Act (collateral not registered within time); and
 (c) subject otherwise to this section—debts of the company secured by a circulating security interest in property of the company.

Debts secured by circulating security interests—receiver appointed before the beginning of restructuring etc.
 (2) A right of indemnity under regulation 5.3B.43 does not have priority over debts of the company that are secured by a circulating security interest in property of the company, except so far as the secured party agrees, if:
 (a) before the making of the restructuring plan, the secured party:
 (i) appointed a receiver of property of the company under a power contained in an instrument relating to the security interest; or
 (ii) obtained an order for the appointment of a receiver of property of the company for the purpose of enforcing the security interest; or
 (iii) entered into possession, or assumed control, of property of the company for that purpose; or
 (iv) appointed a person so as to enter into possession or assume control (whether as agent for the secured party or for the company); and
 (b) the receiver or person