Section 415F — Corporations Act 2001: Order for rights to be enforceable only with leave of the Court

Orders (1) The Court may order that one or more rights under a contract, agreement or arrangement are enforceable against a body only: (a) with the leave of the Court; and (b) in accordance with such terms (if any) as the Court imposes. Example: The order could be sought for a right to terminate for convenience. (2) The Court may make the order (the stay order) if: (a) the body is the subject of any of the following: (i) an announcement referred to in paragraph 415D(1)(a); (ii) an application under section 411 (the section 411 application); (iii) a compromise or arrangement approved under this Part as a result of a section 411 application; and (b) the Court is satisfied that: (i) the rights are being exercised; or (ii) the rights are likely to be exercised; or (iii) there is a threat to exercise the rights; because of one or more reasons referred to in paragraphs 415D(1)(a) to (f); and (c) an application for the stay order is: (i) if the body has made an announcement referred to in paragraph 415D(1)(a), but not yet a section 411 application—made by the body; or (ii) if the body has made a section 411 application, but a resulting compromise or arrangement is yet to be approved under this Part—included in the section 411 application; or (iii) if a compromise or arrangement has been approved under this Part as a result of the section 411 application—made by the person appointed to administer the compromise or arrangement; and (d) in a case where the body has made a section 411 application—the section 411 application states it is being made for the purpose of the body avoiding being wound up in insolvency. (3) A stay order must specify the period for which it applies. In working out the period, the Court must have regard to: (a) subsections 415D(2), (3) and (4); and (b) the interests of justice. (4) Subsection (1) does not apply to a right referred to in subsection 415D(6) or (8). Interim orders (5) Before deciding an application for a stay order, the Court may grant an interim order for one or more rights under a contract, agreement or arrangement not to be enforced against a body. (6) The Court must not require an applicant for a stay order to give an undertaking as to damages as a condition of granting an interim order.