CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 5 - EXTERNAL ADMINISTRATION
PART 5.5 - VOLUNTARY WINDING UP
Division 4 - Voluntary winding up generally
SECTION 510
ARRANGEMENT: WHEN BINDING ON CREDITORS
510(1)
[Requirement of resolution]
An arrangement entered into between a company about to be, or in the course of being, wound up and its creditors is, subject to subsection
(4):
(a)
binding on the company if sanctioned by a special resolution; and
(b)
binding on the creditors if sanctioned by a resolution of the creditors.
History
S 510(1) amended by No 210 of 1992, s 83 (effective 23 June 1993).
CCH Note:
See s 1382-1383.
510(1A)
[Lodgment of special resolution]
The company must lodge a copy of a special resolution referred to in paragraph
(1)(a) with ASIC within 14 days after the resolution is passed.
History
S 510(1A) amended by No 54 of 1998, Sch 5, Pt 4 (effective 1 July 1998).
S 510(1A) inserted by No 61 of 1998, Sch 2, Pt 2 (effective 1 July 1998).
510(2)
[Calculation of amount of debt]
A creditor shall be accounted a creditor for value for such sum as upon an account fairly stated, after allowing the value of security or liens held by the creditor and the amount of any debt or set-off owing by the creditor to the company, appears to be the balance due to the creditor.
510(3)
[Dispute as to debt]
A dispute about the value of any such security or lien or the amount of any such debt or set-off may be settled by the Court on the application of the company, the liquidator or the creditor.
510(4)
[Appeal to Court]
A creditor or contributory may, within 3 weeks after the completion of the arrangement, appeal to the Court in respect of the arrangement, and the Court may confirm, set aside or modify the arrangement and make such further order as it thinks just.