Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
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849BB(1)
Subject to subsections (2) and (4) , a right to terminate: (a) an arrangement; or (b) an obligation under an arrangement;
that arises:
(c) by express provision (however described) of an arrangement; or (d) because of anything done in accordance with a direction given under section 823F ;cannot be exercised if a body corporate to which this Subdivision applies is a party to the arrangement.
Rights not subject to the stay
849BB(2)
Subsection (1) does not apply to the right if it is: (a) a right that is exercisable only in particular circumstances (other than circumstances relating to the manner in which the right is exercised, such as a requirement relating to giving notice about exercising the right); or (b) a right:
(i) under an arrangement entered into after this Subdivision begins to apply to the body corporate; or
(c) a right contained in a kind of arrangement:
(ii) that arises because of anything done in accordance with a direction given, after this Subdivision begins to apply to the body corporate, under section 823F ; or
(i) prescribed by the regulations for the purposes of this subparagraph; or
(d) a right of a kind:
(ii) declared under paragraph (3)(a) of this section; or
(i) prescribed by the regulations for the purposes of this subparagraph; or
(e) a right of a kind declared under paragraph (3)(c) , and the circumstances specified in that declaration exist.
(ii) declared under paragraph (3)(b) ; or
849BB(3)
For the purposes of subsection (2) , the Minister may, by legislative instrument: (a) declare kinds of arrangements referred to in a specified law of the Commonwealth; or (b) declare kinds of rights to which subsection (1) does not apply; or (c) declare kinds of rights to which subsection (1) does not apply in specified circumstances.
849BB(4)
Subsection (1) does not apply to the exercise of a right if, before the exercise of the right: (a) the Reserve Bank; or (b) if a liquidator of the body corporate is appointed after this Subdivision ceases to apply to the body corporate - the liquidator;
consents in writing to the exercise of the right.
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