Corporations Regulations 2001

SCHEDULE 8A - DEED OF COMPANY ARRANGEMENT - PRESCRIBED PROVISIONS  

(regulation 5.3A.06)

3  

3   Termination of deed where arrangement fails  
If the administrator or the committee of inspection determines that it is no longer practicable or desirable either to continue to carry on the business of the company or to implement this deed, the administrator:

(a) may cease to carry on the business of the company except so far as is necessary for the beneficial winding up of the company;

(b) must summon a meeting of creditors for the purpose of passing a resolution under section 445C(b) of the Act; and

(c) must forward to each creditor not less than 14 days prior to the meeting an up-to-date report as to the position of the company accompanied by such financial statements as the administrator thinks fit, together with a statement that he or she does not think it practicable or desirable to carry on the business of the company or to continue this deed and that this deed will be terminated if the company's creditors resolve.