Commonwealth Consolidated Acts

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CORPORATIONS ACT 2001 - SECT 415F

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.



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