A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

CORPORATIONS ACT 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)    View history reference

Note: See section 600K.

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 90 - Review of the external administration of a company  

Subdivision B - Court powers to inquire and make orders  

CLAUSE 90-15  COURT MAY MAKE ORDERS IN RELATION TO EXTERNAL ADMINISTRATION  

Court may make orders

90-15(1)  

The Court may make such orders as it thinks fit in relation to the external administration of a company.

Orders on own initiative or on application

90-15(2)  

The Court may exercise the power under subsection (1):


(a) on its own initiative, during proceedings before the Court; or


(b) on application under section 90-20.

Examples of orders that may be made

90-15(3)  

Without limiting subsection (1), those orders may include any one or more of the following:


(a) an order determining any question arising in the external administration of the company;


(b) an order that a person cease to be the external administrator of the company;


(c) an order that another registered liquidator be appointed as the external administrator of the company;


(d) an order in relation to the costs of an action (including court action) taken by the external administrator of the company or another person in relation to the external administration of the company;


(e) an order in relation to any loss that the company has sustained because of a breach of duty by the external administrator;


(f) an order in relation to remuneration, including an order requiring a person to repay to a company, or the creditors of a company, remuneration paid to the person as external administrator of the company.

Matters that may be taken into account

90-15(4)  

Without limiting the matters which the Court may take into account when making orders, the Court may take into account:


(a) whether the liquidator has faithfully performed, or is faithfully performing, the liquidator's duties; and


(b) whether an action or failure to act by the liquidator is in compliance with this Act and the Insolvency Practice Rules; and


(c) whether an action or failure to act by the liquidator is in compliance with an order of the Court; and


(d) whether the company or any other person has suffered, or is likely to suffer, loss or damage because of an action or failure to act by the liquidator; and


(e) the seriousness of the consequences of any action or failure to act by the liquidator, including the effect of that action or failure to act on public confidence in registered liquidators as a group.

Costs orders

90-15(5)  

Without limiting subsection (1), an order mentioned in paragraph (3)(d) in relation to the costs of an action may include an order that:


(a) the external administrator or another person is personally liable for some or all of those costs; and


(b) the external administrator or another person is not entitled to be reimbursed by the company or its creditors in relation to some or all of those costs.

Orders to make good loss sustained because of a breach of duty

90-15(6)  

Without limiting subsection (1), an order mentioned in paragraph (3)(e) in relation to a loss may include an order that:


(a) the external administrator is personally liable to make good some or all of the loss; and


(b) the external administrator is not entitled to be reimbursed by the company or creditors in relation to the amount made good.

Section does not limit Court's powers

90-15(7)  

This section does not limit the Court's powers under any other provision of this Act, or under any other law.

 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page