THE CORPORATIONS LAW

CHAPTER 2L - DEBENTURES

PART 2L.8 - COURT

SECTION 260NB   SPECIFIC COURT POWERS  

260NB(1)  (Court orders)  

If the trustee or ASIC applies to the Court, the Court may make any or all of the following orders:

(a)  an order staying an action or other civil proceedings before a court by or against the borrower or a guarantor body

(b)  an order restraining the borrower from paying any money to the debenture holders or any holders of any other class of debentures

(c)  an order that any security for the debentures be enforceable immediately or at the time the Court directs (even if the debentures are irredeemable or redeemable only on the happening of a contingency)

(d)  an order appointing a receiver of any property constituting security for the debentures

(e)  an order restricting advertising by the borrower for deposits or loans

(f)  an order restricting borrowing by the borrower

(g)  any other order that the Court considers appropriate to protect the interests of existing or prospective debenture holders.

260NB(2)  [Relevant circumstances]  

In deciding whether to make an order under subsection (1), the Court must have regard to:

(a)  the ability of the borrower and each guarantor to repay the amount deposited or lent as and when it becomes due; and

(b)  any contravention of section 260MA by the borrower; and

(c)  the interests of the borrower's members and creditors; and

(d)  the interests of the members of each of the guarantors.

Note:

The Court may order a meeting of debenture holders to be held (see section 260KC).