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Corporations and Other Legislation Amendment (Insolvency Law Reform) Regulation 2016 (F2016L01926)

Schedule 2 Transition to Part 3 of the Insolvency Practice Schedule (Corporations)

Corporations Regulations 2001

2 At the end of the Regulations

Add:

Schedule 13 - Transition to Part 3 of the Insolvency Practice Schedule (Corporations)

Note: See subregulation 10.25.01(3).

Corporations Act 2001

1 Section 1550 (paragraph relating to Part 3)

Omit "that starts on or after the commencement of Part 1 of Schedule 2 to the Insolvency Law Reform Act 2016", substitute "that starts on or after 1 September 2017".

2 After section 1554

Insert:

1554A Saving of Register of Official Liquidators

(1) This section applies to the Register of Official Liquidators kept in accordance with subsection 1286(2) of the old Act.

(2) Despite the repeal of sections 1283 and 1286 by Schedule 2 to the Insolvency Law Reform Act 2016, the Register of Official Liquidators continues in existence, and may be dealt with, as if those repeals had not happened.

3 Section 1578 (paragraph relating to new external administrations)

Omit "the commencement of the Insolvency Law Reform Act 2016 (called new external administrations)", substitute "1 September 2017".

4 Section 1579

Repeal the section, substitute:

1579 Application of Part 3 of the Insolvency Practice Schedule (Corporations) - general rules

(1) Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to an external administration of a company that starts on or after 1 September 2017.

(2) Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to an ongoing external administration of a company in accordance with this Division.

5 Sections 1581 and 1582

Repeal the sections, substitute:

1581 Old Act continues to apply in relation to remuneration for administrators already appointed or appointed during transition period

(1) Despite the repeal of sections 449E and 473 and the repeal and substitution of subsections 499(3) to (7) of the old Act by Schedule 2 to the Insolvency Law Reform Act 2016, the old Act continues to apply in relation to the remuneration of an external administrator of a company who is appointed:

(a) before the start time; or

(b) during the transition period.

(2) Despite subsection (1), if, under Subdivision F of this Division, Division 75 of the Insolvency Practice Schedule (Corporations) rather than the old Act would apply to a meeting that deals with the remuneration of an external administrator of a company who is appointed before the start time or during the transition period, Division 75 of the Insolvency Practice Schedule (Corporations) applies to that meeting.

(3) In this section:

start time means the commencement of Schedule 1 to the Insolvency Law Reform Act 2016.

transition period means the period:

(a) starting immediately after the start time; and

(b) ending at the end of 31 August 2017.

1582 Duties of administrators relating to remuneration and other benefits

(1) Section 60-20 of the Insolvency Practice Schedule (Corporations) applies on and after 1 September 2017 in relation to an external administrator of an ongoing external administration of a company regardless of when the administrator was appointed.

(2) However, that section does not apply in relation to arrangements made before 1 September 2017.

6 Subsection 1582(1)

After "applies", insert "on and after 1 September 2017".

7 Section 1584

Omit all the words after "applies", substitute "on and after 1 September 2017 regardless of when the vacancy in the office of the liquidator arose".

8 At the end of section 1586

Add "on and after 1 September 2017".

9 Subsection 1588(2) (heading)

Repeal the heading, substitute:

Old regulations continue to apply to money received before 1 September 2017

10 Subsection 1590(2) (heading)

Repeal the heading, substitute:

Old regulations continue to apply to securities received before 1 September 2017

11 At the end of section 1591

Add "on and after 1 September 2017".

12 Section 1592

Repeal the section, substitute:

1592 Transitional rules for annual administration returns

(1) Section 70-5 of the Insolvency Practice Schedule (Corporations) applies in relation to a person if the person first began to be an external administrator of a company on or after 1 September 2017.

(2) Section 70-5 of the Insolvency Practice Schedule (Corporations) also applies in relation to a person if the person first began to be an external administrator of a company before 1 September 2017 as if the reference in that section to an administration return year for the administrator were a reference to:

(a) the first full year starting on or after 1 September 2017 that is an anniversary of when the person first began to be the external administrator of the company; and

(b) each subsequent period of 12 months.

(3) Despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, those provisions continue to apply to an external administrator of a company appointed before 1 September 2017:

(a) if the end of the 6-month period referred to in the old return provisions occurs before 1 March 2018 - in relation to that period; and

(b) if the end of that period is not an anniversary of the administrator's appointment - in relation to the subsequent 6-month period.

(4) To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued in relation to accounts lodged under those provisions as if the old Act continued to apply.

(5) In this section:

old return provisions means the following provisions of the old Act:

(a) subsection 438E(1);

(b) subsection 445J(1);

1592A Transitional rules for end of administration returns

(1) Section 70-6 of the Insolvency Practice Schedule (Corporations) applies in relation to external administrations that end on or after 1 September 2017.

(2) Despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, those provisions continue to apply, in relation to an external administrator of a company, if the external administrator ceases to act as an external administrator for the company before 1 September 2017.

(3) To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued in relation to accounts lodged under those provisions as if the old Act continued to apply.

(4) In this section:

old return provisions means the following provisions of the old Act, as in force before their repeal by Schedule 2 to the Insolvency Law Reform Act 2016:

(a) subsection 438E(2);

(b) subsection 445J(2);

13 Section 1594

After "apply", insert "on and after 1 September 2017".

14 Subsection 1596(1)

After "applies", insert "on and after 1 September 2017".

15 Sections 1597, 1598 and 1599

After "applies", insert "on and after 1 September 2017".

16 At the end of section 1601

Add "on and after 1 September 2017".

17 Section 1604

Omit "2017", insert "2018".

18 Section 1606

After "apply", insert "on and after 1 September 2017".

19 Section 1606