Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 2 - ABORIGINAL AND TORRES STRAIT ISLANDER CORPORATIONS  

PART 2-3 - DECISIONS ON APPLICATIONS  

Division 29 - What are the basic requirements for registration?  

SECTION 29-18   CREDITOR NOTICE REQUIREMENT  

29-18(1)    
If an application is made under section 23-1 to register an Aboriginal and Torres Strait Islander corporation (the amalgamated corporation ) to replace 2 or more existing Aboriginal and Torres Strait Islander corporations (the amalgamating corporations ), the amalgamated corporation meets the creditor notice requirement if:

(a)    the applicant has given the Registrar a notice of intention to make the application; and

(b)    the applicant has, within 14 days after giving the Registrar the notice, published the following in accordance with subsection (2) :

(i) a copy of the notice;

(ii) a statement informing substantial creditors of the amalgamating corporations that those creditors may, within the objection period, object under subsection (3) to the grant of the application;

(iii) such other information as is prescribed by the regulations for the purposes of this subparagraph; and

(c)    each of the amalgamating corporations has, during the objection period, taken reasonable steps to bring the following to the attention of persons who are, or who are likely to or who may become, substantial creditors of the corporation:

(i) the proposed amalgamation;

(ii) the right that substantial creditors of the corporation have under subsection (3) to object to the grant of the application made under section 23-1 ; and

(d)    the application under section 23-1 is made within 14 days after the end of the objection period.

Note 1:

For substantial creditor , see paragraph (5)(a) .

Note 2:

For objection period , see paragraph (5)(b) .

29-18(2)    
The material referred to in paragraph (1)(b) must be published:

(a)    in a national newspaper; or

(b)    for each State or Territory in which any of the amalgamating corporations has its registered office (if any) or carries on business or other operations - in a daily newspaper that circulates generally in that State or Territory.

If the material is published in a number of newspapers under paragraph (b) , all of the publications must occur on the same day.

29-18(3)    
A substantial creditor of any of the amalgamating corporations may object to the grant of the application by:

(a)    lodging with the Registrar a written objection that contains the information prescribed by the regulations for the purposes of this paragraph; and

(b)    giving the applicant a copy of the objection; within the objection period.

29-18(4)    
A substantial creditor of an amalgamating corporation who has lodged an objection under subsection (3) may, by written notice to the Registrar, withdraw the objection.

29-18(5)    
For the purposes of this section:

(a)    a person is a substantial creditor of an amalgamating corporation if:

(i) the amalgamating corporation owes a debt, or debts, to the person; and

(ii) the amount of that debt, or the sum of the amounts of those debts, that is unsecured exceeds the amount prescribed by the regulations for the purposes of this subsection; and

(b)    the objection period is the period of 21 days after the day on which the material referred to in paragraph (1)(b) is published in accordance with subsection (2) ; and

(c)    an amalgamating corporation is taken to owe a debt to a person even if the debt is contingent or prospective.