THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 7A - Disclaimer of onerous property

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SECTION 568B   APPLICATION TO SET ASIDE DISCLAIMER BEFORE IT TAKES EFFECT  

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568B(1)  [Application to Court to set aside disclaimer]  

A person who has, or claims to have, an interest in disclaimed property may apply to the Court for an order setting aside the disclaimer before it takes effect, but may only do so within 14 days after:

(a)  if the liquidator gives to the person notice of the disclaimer, because of paragraph 568A(1)(b), before the end of 14 days after the liquidator lodges such notice - the liquidator gives such notice to the person; or

(b)  if paragraph (a) does not apply but notice of the disclaimer is published under subsection 568A(2) before the end of the 14 days referred to in that paragraph - the last such notice to be so published is so published; or

(c)  otherwise - the liquidator lodges notice of the disclaimer.

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568B(2)  [Power of Court]  

On an application under subsection (1), the Court:

(a)  may by order set aside the disclaimer; and

(b)  if it does so - may make such further orders as it thinks appropriate.

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568B(3)  [Precondition to Court's setting aside]  

However, the Court may set aside a disclaimer under this section only if satisfied that the disclaimer would cause, to persons who have, or claim to have, interests in the property, prejudice that is grossly out of proportion to the prejudice that setting aside the disclaimer would cause to the company's creditors.

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