Corporations Act 2001
Sections and provisions with full text and the judgments that cite each one.
Section 454G — Giving a notice under a security agreement etc.
Nothing in section 453K, 453R or 454N, or in an order made under subsection 454P(1), prevents a person from giving a notice under the provisions of an agreement or instrument under which a security…
Section 454H — Sale of property subject to a possessory security interest
Scope (1) This section applies if: (a) a company is under restructuring; and (b) property of the company is subject to a possessory security interest; and (c) the property is in the possession of the…
Section 454J — Scope of sections 454K to 454M
Sections 454K to 454M do not apply in relation to the enforcement of a right, or the performance or exercise of a function or power, if the enforcement, performance or exercise is authorised by (or…
Section 454K — Where recovery of property begins before restructuring
(1) This section applies if, before the beginning of the restructuring of a company, a receiver or other person: (a) entered into possession, or assumed control, of property used or occupied by, or…
Section 454L — Recovering perishable property
Nothing in section 453K or 453R prevents a person from taking possession of, or otherwise recovering, perishable property.
Section 454M — Court may limit powers of receiver etc. in relation to property used by company
(1) This section applies if: (a) for the purpose of enforcing a right of the owner or lessor of property used or occupied by, or in the possession of, a company to take possession of the property or…
Section 454N — Stay on enforcing rights merely because the company is under restructuring etc.
Stay on enforcing rights (1) A right cannot be enforced against a company for: (a) the reason that the company has come or is under restructuring; or (b) the company’s financial position, if the…
Section 454P — Lifting the stay on enforcing rights
(1) The Court may order that subsection 454N(1) does not apply for one or more rights against a company if the Court is satisfied that this is appropriate in the interests of justice. (2) An…
Section 454Q — 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 company only: (a) with the leave of the Court; and (b) in accordance with…
Section 454R — 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…
Section 454S — When other laws prevail—certain other Commonwealth Acts
If there is any inconsistency between sections 454N to 454R and one of the following Acts, that Act prevails to the extent of the inconsistency: (a) the Payment Systems and Netting Act 1998; (b) the…
Section 455A — Proposing a restructuring plan
(1) A company may propose a restructuring plan to its creditors. (2) The company is taken to be insolvent if the company does so. (3) The regulations may prescribe the time at which the company is…
Section 455B — Restructuring plan
Proposing a restructuring plan (1) The regulations may make provision for and in relation to the following: (a) proposing a restructuring plan; (b) the matters that must or may be included in a…
Section 456A — Appointee must consent
A person cannot be appointed as restructuring practitioner for a company or for a restructuring plan unless: (a) the person has consented in writing to the appointment; and (b) as at the time of the…
Section 456LA — Restructuring practitioner has qualified privilege
A person who is or has been the restructuring practitioner for a company or a company’s restructuring plan has qualified privilege in respect of a statement that the person has made, whether orally…
Section 456B — Restructuring practitioner must be registered liquidator
(1) A person must not consent to be appointed, and must not act as restructuring practitioner for a company or for a restructuring plan. (2) Subsection (1) does not apply if the person is a…
Section 456LB — Protection of persons dealing with restructuring practitioner
(1) Sections 128 and 129 apply in relation to a company that is under restructuring as if: (a) a reference in those sections to the company, or to an officer of the company, included a reference to…
Section 456C — Disqualification of person connected with company
(1) Subject to this section, a person must not, except with the leave of the Court, seek or consent to be appointed as, or act as, restructuring practitioner for a company or for a restructuring plan…
Section 456D — Appointment of restructuring practitioner cannot be revoked
The appointment of a person as restructuring practitioner for a company or for a restructuring plan cannot be revoked.
Section 456E — Vacancy in office of restructuring practitioner for company
(1) Where the restructuring practitioner for a company: (a) dies; or (b) becomes prohibited from acting as restructuring practitioner for the company; or (c) resigns by notice in writing given to the…
Section 456F — Declarations by replacement restructuring practitioner—relevant relationships
Scope (1) This section applies to a restructuring practitioner appointed under subsection 456E(1) otherwise than by the Court. Declaration of relationships (2) As soon as practicable after being…
Section 456G — Rights, obligations and liabilities of a company and its officers in relation to the restructuring practitioner
(1) The regulations may make provision for and in relation to the following: (a) the rights, obligations and liabilities of a company that is or has been under restructuring in relation to a person…
Section 456H — No liability for consent etc.
A person who is or has been the restructuring practitioner for a company under restructuring is not liable to an action or other proceeding for damages in respect of: (a) a decision to terminate, or…
Section 456J — Right of indemnity
A person who is or has been the restructuring practitioner for a company under restructuring is entitled to be indemnified out of the company’s property (other than any PPSA retention of title…
Section 456K — Right of indemnity has priority over other debts
General rule (1) Subject to section 556, a right of indemnity under section 456J has priority over: (a) all the company’s unsecured debts; and (b) any debts of the company secured by a PPSA security…
Section 456L — Lien to secure indemnity
(1) To secure a right of indemnity under section 456J, the restructuring practitioner has a lien on the company’s property. (2) A lien under subsection (1) has priority over another security interest…
Section 456M — Appointment of 2 or more restructuring practitioners of company
(1) Where a provision of this Act provides for a small business restructuring practitioner for a company to be appointed, 2 or more persons may be appointed as small business restructuring…
Section 456N — Appointment of 2 or more restructuring practitioners of restructuring plan
(1) Where a provision of this Act provides for a small business restructuring practitioner for a restructuring plan to be appointed, 2 or more persons may be appointed as small business restructuring…
Section 457A — Regulations may deal with information etc.
The regulations may make provision for and in relation to: (a) giving information, providing a report or producing a document to the restructuring practitioner for a company or for a restructuring…
Section 457B — Notice in public documents of company
(1) A company under restructuring must set out, in every public document, and in every negotiable instrument, of the company, after the company’s name where it first appears, the expression…
Section 457C — Effect of contravention of this Division
A contravention of this Division, or regulations made for the purposes of this Division, does not affect the validity of anything done or omitted under this Part, except so far as a Court otherwise…
Section 458A — General power to make orders
(1) The Court may make such order as it thinks appropriate about how this Part is to operate in relation to a particular company. (2) An order may be made subject to conditions. (3) An order may be…
Section 458B — Other powers of the Court
(1) The regulations may: (a) confer powers on the Court in relation to the restructure of companies or restructuring plans; and (b) prescribe whether those powers are to be exercised on the…
Section 458C — Time for doing act does not run while act prevented by this Part
Where: (a) for any purpose (for example, the purposes of a law, agreement or instrument) an act must or may be done within a particular period or before a particular time; and (b) this Part prevents…
Section 458D — Meaning of restructuring relief period
In this Act: restructuring relief period means the period: (a) beginning on 1 January 2021; and (b) ending on 31 March 2021.
Section 458E — Meaning of eligible for temporary restructuring relief
When is a company eligible for temporary restructuring relief? (1) A company is eligible for temporary restructuring relief if: (a) before the end of the restructuring relief period, the directors of…
Section 458F — Directors declare company not eligible for temporary restructuring relief
(1) The directors of a company contravene this subsection if: (a) there are not reasonable grounds to believe either or both of the following: (i) that the company is insolvent, or is likely to…
Section 458G — Court order that company not eligible for temporary restructuring relief
(1) The Court may order that a company is not eligible for temporary restructuring relief if there are not reasonable grounds to believe any of the following: (a) the company is insolvent, or is…
Section 458H — Obligation on registered liquidator to report
A registered liquidator contravenes this section if: (a) the directors of a company have published under subparagraph 458E(1)(a)(ii) notice of a declaration under subparagraph 458E(1)(a)(i) that has…
Section 459A — Order that insolvent company be wound up in insolvency
On an application under section 459P, the Court may order that an insolvent company be wound up in insolvency.
Section 459B — Order made on application under section 234, 462 or 464
Where, on an application under section 234, 462 or 464, the Court is satisfied that the company is insolvent, the Court may order that the company be wound up in insolvency.
Section 459C — Presumptions to be made in certain proceedings
(1) This section has effect for the purposes of: (a) an application under section 234, 459P, 462 or 464; or (b) an application for leave to make an application under section 459P. (2) The Court must…
Section 459D — Contingent or prospective liability relevant to whether company solvent
(1) In determining, for the purposes of an application of a kind referred to in subsection 459C(1), whether or not the company is solvent, the Court may take into account a contingent or prospective…
Section 459E — Creditor may serve statutory demand on company
(1) A person may serve on a company a demand relating to: (a) a single debt that the company owes to the person, that is due and payable and whose amount is at least the statutory minimum; or (b) 2…
Section 459F — When company taken to fail to comply with statutory demand
(1) If, as at the end of the period for compliance with a statutory demand, the demand is still in effect and the company has not complied with it, the company is taken to fail to comply with the…
Section 459G — Company may apply
(1) A company may apply to the Court for an order setting aside a statutory demand served on the company. (2) An application may only be made within the statutory period after the demand is so…
Section 459H — Determination of application where there is a dispute or offsetting claim
(1) This section applies where, on an application under section 459G, the Court is satisfied of either or both of the following: (a) that there is a genuine dispute between the company and the…
Section 459J — Setting aside demand on other grounds
(1) On an application under section 459G, the Court may by order set aside the demand if it is satisfied that: (a) because of a defect in the demand, substantial injustice will be caused unless the…
Section 459K — Effect of order setting aside demand
A statutory demand has no effect while there is in force under section 459H or 459J an order setting aside the demand.
Section 459L — Dismissal of application
Unless the Court makes, on an application under section 459J, an order under section 459H or 459J, the Court is to dismiss the application.