Corporations Act 2001

CHAPTER 2L - DEBENTURES  

PART 2L.8 - COURT  

SECTION 283HB   SPECIFIC COURT POWERS  

283HB(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.

283HB(2)   [ Relevant considerations]  

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 283GA 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 283EC).