THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.2 - RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS

 View history note

SECTION 434B   COURT MAY REMOVE REDUNDANT CONTROLLER  

View history reference

434B(1)  [Court may order cessation or limitation of powers]  

The Court may order that, on and after a specified day, a controller of property of a corporation:

(a)  cease to act as receiver, or give up possession or control, as the case requires, of property of the corporation; or

(b)  act as receiver, or continue in possession or control, as the case requires, only of specified property of the corporation.

 View history note

434B(2)  [Order only where objectives of controller's appointment achieved]  

However, the Court may only make an order under subsection (1) if satisfied that the objectives for which the controller was appointed, or entered into possession or took control of property of the corporation, as the case requires, have been achieved, so far as is reasonably practicable, except in relation to any property specified in the order under paragraph (1)(b).

 View history note

434B(3)  [Interests to which Court to have regard]  

For the purposes of subsection (2), the Court must have regard to:

(a)  the corporation's interests; and

(b)  the interests of the holder of the charge that the controller is enforcing; and

(c)  the interests of the corporation's other creditors; and

(d)  any other relevant matter.

 View history note

434B(4)  [Only liquidator may apply for order]  

The Court may only make an order under subsection (1) on the application of a liquidator appointed for the purposes of winding up the corporation in insolvency.

 View history note

434B(5)  [Additional effect of order]  

An order under subsection (1) may also prohibit the holder of the charge from doing any or all of the following, except with the leave of the Court:

(a)  appointing a person as receiver of property of the corporation under a power contained in an instrument relating to the charge;

(b)  entering into possession, or taking control, of such property for the purpose of enforcing the charge;

(c)  appointing a person so to enter into possession or take control (whether as agent for the chargee or for the corporation).

 View history note

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.