Treasury Laws Amendment (2021 Measures No. 5) Act 2021 (127 of 2021)

Schedule 2   Consequential and transitional matters arising from corporate insolvency reforms

Corporations (Aboriginal and Torres Strait Islander) Act 2006

14   After Part 11-4

Insert:

Part 11-4A - Restructuring of an Aboriginal and Torres Strait Islander corporation

Division 522 - Restructuring of an Aboriginal and Torres Strait Islander corporation

522-1 Applying Corporations Act restructuring provisions to Aboriginal and Torres Strait Islander corporations

(1) The Corporations Act restructuring provisions apply to an Aboriginal and Torres Strait Islander corporation as if the following substitutions were made:

(2) The Corporations Act restructuring provisions apply to an Aboriginal and Torres Strait Islander corporation:

(a) only to the extent to which they are capable of applying to an Aboriginal and Torres Strait Islander corporation; and

(b) with the modifications specified in the regulations.

(3) Regulations made for the purposes of paragraph (2)(b) must not:

(a) increase, or have the effect of increasing, the maximum penalty for any offence; or

(b) widen, or have the effect of widening, the scope of any offence.

(4) In this Act:

Corporations Act restructuring provisions means:

(a) Part 5.3B of, and Schedule 2 to, the Corporations Act; and

(b) the other provisions of that Act (including Parts 1.2, 5.8, 5.9 and 9.4 and Schedule 3 but not including Parts 1.1, 1.1A and 9.4A) to the extent to which they relate to the operation of Part 5.3B of, and Schedule 2 to, that Act; and

(c) the regulations and rules made under that Act for the purposes of Part 5.3B of, and Schedule 2 to, that Act and the provisions referred to in paragraph (b).

522-2 Corporations Act restructuring practitioner cannot be appointed if special administrator appointed

(1) A restructuring practitioner for an Aboriginal and Torres Strait Islander corporation cannot be appointed under Part 5.3B of the Corporations Act (as applied by section 522-1 of this Act) if:

(a) the corporation is under special administration under Part 11-2; or

(b) the Registrar:

(i) has given the corporation a notice under subsection 487-10(1); and

(ii) has not given the corporation a notice under subsection 487-10(5).

(2) Paragraph (1)(b) does not apply if the Registrar has consented in writing to the appointment of the restructuring practitioner under Part 5.3B of the Corporations Act (as applied by section 522-1 of this Act).

(3) A consent under subsection (2) to the appointment of a restructuring practitioner is not a legislative instrument.

522-3 Effect of appointment of special administrator - Aboriginal and Torres Strait Islander corporation under restructuring

If:

(a) a restructuring practitioner for an Aboriginal and Torres Strait Islander corporation is appointed under Part 5.3B of the Corporations Act (as applied by section 522-1 of this Act); and

(b) while that appointment continues, a special administrator for the corporation is appointed under Part 11-2; and

(c) at the time the special administrator is appointed, the corporation has not made a restructuring plan;

the restructuring of the corporation under Part 5.3B of the Corporations Act (as applied by section 522-1 of this Act) ends on the day on which the special administrator is appointed.

522-4 Effect of appointment of special administrator - Aboriginal and Torres Strait Islander corporation subject to restructuring plan

(1) This section applies if:

(a) an Aboriginal and Torres Strait Islander corporation makes a restructuring plan under Part 5.3B of the Corporations Act (as applied by section 522-1 of this Act); and

(b) before the plan terminates, a special administrator for the corporation is appointed under Part 11-2.

(2) The Court may order that the restructuring plan is to terminate.

(3) The order may be made on the application of:

(a) the Registrar; or

(b) the special administrator for the corporation; or

(c) any other interested person.

(4) The order may be made subject to conditions.

Effect of termination of restructuring plan

(5) If the Court orders that the restructuring plan is to terminate, any admissible debt or claim that has not been dealt with in accordance with the restructuring plan is taken to be due and payable on the business day after the day on which the termination occurs.

(6) In this section:

admissible debt or claim has the same meaning as in the Corporations Regulations 2001.