Corporations Act 2001
Note: This Part does not apply to a CCIV or a sub-fund of a CCIV: see Division 4 of Part 8B.6 .
View history note
Hide history noteGeneral rule
453R(1)
During the restructuring of a company, the restrictions set out in the table at the end of this section apply in relation to the exercise of the rights of a person (the third party ) in property of the company, or other property used or occupied by, or in the possession of, the company, as set out in the table.
Note: The property of the company includes any PPSA retention of title property of the company (see section 452B ).
Exception - consent of restructuring practitioner or leave of court
453R(2)
The restrictions set out in the table at the end of this section do not apply in relation to the exercise of a third party ' s rights in property if the rights are exercised:
(a) with the restructuring practitioner ' s written consent; or
(b) with the leave of the Court.
Possessory security interests - continued possession
453R(3)
If a company ' s property is subject to a possessory security interest, and the property is in the lawful possession of the secured party, the secured party may continue to possess the property during the restructuring of the company.
| Restrictions on exercise of third party rights | ||
| Item | If the third party is … | then … |
| 1 | a secured party in relation to property of the company, and is not otherwise covered by this table | the third party cannot enforce the security interest. |
| 2 | a secured party in relation to a possessory security interest in the property of the company | the third party cannot sell the property, or otherwise enforce the security interest. |
| 3 | a lessor of property used or occupied by, or in the possession of, the company, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in goods arising out of a lease of the goods | the following restrictions apply: |
| (a) | distress for rent must not be carried out against the property; | |
| (b) | the third party cannot take possession of the property or otherwise recover it; | |
| (c) | if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest. | |
| 4 | an owner (other than a lessor) of property used or occupied by, or in the possession of, the company, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in the property | the following restrictions apply: |
| (a) | the third party cannot take possession of the property or otherwise recover it; | |
| (b) | if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest. |
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.
