THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.2 - RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS

SECTION 434B   COURT MAY REMOVE REDUNDANT CONTROLLER  

434B(1)  [Court may order cessation or limitation of powers]  

The Court may order that, on and after a specified day, a controller of property of a corporation:

(a)  cease to act as receiver, or give up possession or control, as the case requires, of property of the corporation; or

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

434B(2)  [Order only where objectives of controller's appointment achieved]  

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).

434B(3)  [Interests to which Court to have regard]  

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.

434B(4)  [Only liquidator may apply for order]  

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.

434B(5)  [Additional effect of order]  

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).