Insolvency Law Reform Act 2016 (11 of 2016)

Schedule 3   Other amendments

Part 4   Termination of deed of company arrangement

Corporations Act 2001

9   After section 446A

Insert:

446AA Administrator becomes liquidator - additional cases

Scope

(1) This section applies if a company has executed a deed of company arrangement and:

(a) the Court, at a particular time, makes an order under section 445D terminating the deed of company arrangement; or

(b) both:

(i) the deed of company arrangement specifies circumstances in which the deed is to terminate and the company is to be wound up; and

(ii) those circumstances exist at a particular time.

Resolution that company be wound up voluntarily

(2) The company is taken:

(a) to have passed, at the time referred to in paragraph (1)(a) or subparagraph (1)(b)(ii), as the case may be, a special resolution under section 491 that the company be wound up voluntarily; and

(b) to have done so without a declaration having been made and lodged under section 494.

Information about company's affairs

(3) Section 497 is taken to have been complied with in relation to the winding up.

Notice of resolution

(4) The liquidator must:

(a) within 5 business days after the day on which the company is taken to have passed the resolution, lodge with ASIC a written notice in the prescribed form:

(i) stating that the company is taken because of this section to have passed such a resolution; and

(ii) specifying that day; and

(b) cause the notice to be published, within 5 business days after that day, in the prescribed manner.

Power to stay or terminate winding up

(5) Section 482 applies in relation to the winding up as if it were a winding up in insolvency or by the Court.

Note: Section 482 empowers the Court to stay or terminate a winding up and give consequential directions.

(6) An application under section 482 as applying because of subsection (5) may be made:

(a) despite section 198G (exercise of directors' powers while company under external administration), by the company pursuant to a resolution of the board; or

(b) by the liquidator; or

(c) by a creditor; or

(d) by a contributory.

Note: See also section 499 (appointment of liquidator).