Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Division 6 - Powers of Court  

REGULATION 5.3B.62   WHEN COURT MAY VOID OR VALIDATE RESTRUCTURING PLAN  

Voiding of restructuring plan

5.3B.62(1)    
The Court may make an order declaring that all or part of a company ' s restructuring plan is void if the Court is satisfied that:

(a)    there are reasonable grounds to believe that the plan, or a part of the plan, was not made in accordance with, or does not comply with, the Act or these regulations; or

(b)    the restructuring practitioner for the plan has committed a breach of duty in relation to the plan; or

(c)    the restructuring practitioner for the plan has breached a condition of the restructuring practitioner ' s registration as a liquidator; or

(d)    the restructuring practitioner for the plan has breached a condition imposed under section 20-35 of Schedule 2 to the Act, to the extent that the condition relates to restructuring plans.

5.3B.62(2)    
The Court may make any other order that it thinks appropriate in relation to the declaration.

Validity of plan despite contravention

5.3B.62(3)    
The Court may make an order declaring that all or part of a company ' s restructuring plan is valid, despite a contravention of a provision of the Act or these regulations, if the Court is satisfied that:

(a)    the provision was substantially complied with; and

(b)    no injustice will result for anyone bound by the plan if the contravention is disregarded.

Applications for orders under this regulation

5.3B.62(4)    
The Court may make an order under this regulation on the application of:

(a)    the company; or

(b)    an affected creditor; or

(c)    the company ' s restructuring practitioner; or

(d)    ASIC.

5.3B.62(5)    
However, an application for an order under this regulation must not be made if the plan has terminated because of paragraph 5.3B.31(1)(a) .