Section 451GA — Corporations Act 2001: Self-executing provisions

(1) The object of subsection (2) is to ensure that a self-executing provision: (a) cannot start to apply against a company for certain reasons; and (b) can be the subject of a Court order providing that the provision can only start to apply against a company with the leave of the Court, and in accordance with such terms (if any) as the Court imposes. (2) Sections 451E to 451G also apply in relation to a self-executing provision in a corresponding way to the way they apply in relation to a right. For this purpose, assume those sections apply with such modifications as are necessary, including any prescribed by the regulations for the purposes of this subsection. Note 1: This subsection achieves the object in subsection (1) by extending the application of all of the outcomes, exceptions and powers in sections 451E to 451G. Note 2: These modifications include, for example, treating: (a) a reference that a right cannot be enforced (however described) as including a reference that a self-executing provision cannot start to apply; and (b) the words “if the right arises for that reason by express provision (however described) of a contract, agreement or arrangement” as being omitted from subsection 451E(1); and (c) a reference that one or more rights are enforceable as including a reference that one or more self-executing provisions can start to apply; and (d) paragraph 451G(2)(b) as alternatively providing that the Court is satisfied that one or more reasons referred to in paragraphs 451E(1)(a) to (d) can cause the self-executing provisions to start to apply. (3) In this section: self-executing provision means a provision of a contract, agreement or arrangement that can start to apply automatically: (a) for one or more reasons; and (b) without any party to the contract, agreement or arrangement making a decision that the provision should start to apply.