Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020
I, General the Honourable David Hurley AC DSC (Retd), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.
Dated 17 December 2020
David Hurley
Governor‑General
By His Excellency’s Command
Josh Frydenberg
Treasurer
1 Name
2 Commencement
3 Authority
4 Schedules
Schedule 1—Restructuring of a company
Corporations Regulations 2001
Schedule 2—Temporary relief for companies seeking a restructuring practitioner
Corporations Regulations 2001
Schedule 3—Simplified liquidation
Corporations Regulations 2001
Schedule 4—Virtual meetings and electronic communications
Corporations Regulations 2001
Schedule 5—Fees for registration as liquidator
Part 1—Amendments relating to the commencement of Schedule 1 to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020
Corporations (Fees) Regulations 2001
Part 2—Amendments commencing 1 July 2022
Corporations (Fees) Regulations 2001
This instrument is the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020.
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information | ||
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. Sections 1 to 4 and anything in this instrument not elsewhere covered by this table | The day after this instrument is registered. | 22 December 2020 |
2. Schedule 1 | The later of: (a) the day after this instrument is registered; and (b) the day on which Schedule 1 to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 commences. | 1 January 2021 (paragraph (b) applies) |
3. Schedule 2 | The later of: (a) the day after this instrument is registered; and (b) the day on which Schedule 2 to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 commences. | 1 January 2021 (paragraph (b) applies) |
4. Schedule 3 | The later of: (a) the day after this instrument is registered; and (b) the day on which Schedule 3 to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 commences. | 1 January 2021 (paragraph (b) applies) |
5. Schedule 4 | The later of: (a) the day after this instrument is registered; and (b) the day on which Schedule 4 to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 commences. | 22 December 2020 (paragraph (a) applies) |
6. Schedule 5, Part 1 | The later of: (a) the day after this instrument is registered; and (b) the day on which Schedule 1 to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 commences. | 1 January 2021 (paragraph (b) applies) |
7. Schedule 5, Part 2 | 1 July 2022. | 1 July 2022 |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
This instrument is made under:
(a) the Corporations Act 2001; and
(b) the Corporations (Fees) Act 2001.
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
In this Part, unless the contrary intention appears:
accepted, in relation to a proposal to make a restructuring plan, has the meaning given by subregulation 5.3B.25(1).
admissible debt or claim, in relation to a company under restructuring or a company’s restructuring plan, means a debt or claim that would be admissible to proof against the company under subsection 553(1) of the Act if:
(a) the company were wound up; and
(b) the relevant date were:
(i) if the company is under restructuring—the beginning of the restructuring; and
(ii) if the company has made a restructuring plan—the beginning of the restructuring that ended when the plan was made;
but does not include:
(c) the entitlements of an employee of the company; or
(d) a debt or claim that would be admissible to proof under subsection 553(1A) of the Act.
Note: Employee entitlements are defined in subsections 596AA(2) and (3) of the Act and include superannuation contributions payable by the company.
affected creditor means:
(a) in relation to a proposal to vary or terminate a company’s restructuring plan—a creditor of the company who is a party (as creditor) to the plan; or
(b) in relation to a proposal by a company to make a restructuring plan—a person who would be a party to the restructuring plan if it were made.
make, in relation to a restructuring plan, has the meaning given by regulation 5.3B.26.
proposal period, in relation to a company under restructuring, has the meaning given by regulation 5.3B.17.
propose, in relation to a restructuring plan, has the meaning given by regulation 5.3B.14.
related creditor of a company means a person who is a related entity, and a creditor, of the company.
restructuring proposal statement means a statement made by a company under regulation 5.3B.16.
(a) the company makes a declaration under subregulation (2); or
(b) the company fails to propose a restructuring plan within the proposal period; or
(2) The directors of a company under restructuring:
(a) may make a declaration in writing that the restructuring of the company is to end on a specified day for any reason; and
(b) must give a copy of the declaration to:
(i) the company’s restructuring practitioner; and
(ii) the company’s creditors;
before the day specified in the declaration.
(1) For the purposes of paragraph 453C(1)(a) of the Act, the test for eligibility is that the total liabilities of the company on the day the restructuring begins must not exceed $1 million.
(2) For the purposes of paragraph 453C(1)(b) of the Act, a period of 7 years is prescribed.
(3) For the purposes of paragraph 453C(1)(c) of the Act, a period of 7 years is prescribed.
(4) For the purposes of paragraph 453C(2)(b) of the Act, a prescribed circumstance is that:
(a) the other company is a related body corporate of the company in relation to which the eligibility criteria are to be met; and
(b) the other company is, or has been:
(i) under restructuring; or
(ii) the subject of a simplified liquidation process; and
(c) if subparagraph (b)(i) applies—the restructuring practitioner for the other company was appointed no more than 20 business days before the day on which the restructuring of the company in relation to which the eligibility criteria are to be met began; and
(d) if subparagraph (b)(ii) applies—the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the restructuring of the company in relation to which the eligibility criteria are to be met began.
Definitions
(5) In this regulation:
liability means any liability to pay an admissible debt or claim.
(1) For the purposes of subsection 453L(4) of the Act, this regulation prescribes the circumstances in which entering into a transaction or dealing by a company is to not be treated as in the ordinary course of the company’s business.
(2) The circumstances are as follows:
(a) the transaction or dealing is for the purposes of satisfying an admissible debt or claim;
(b) the transaction or dealing relates to the transfer or sale of the whole or a part of the business;
(c) the transaction or dealing relates to the payment of a dividend.
(1) This regulation applies if the restructuring practitioner for a company under restructuring consents to a transaction or dealing under paragraph 453L(2)(b) of the Act.
(2) The consent must be given:
(a) in writing; or
(b) if the restructuring practitioner is satisfied that the delay caused by giving a written consent would not be in the best interests of the company’s creditors as a whole—orally.
(3) If the consent is given in writing, the written consent must specify any conditions imposed on the consent.
(4) If the consent is given orally, the restructuring practitioner must, within 2 business days after the day on which the consent is given:
(a) make a written record of the consent and any conditions imposed on the consent; and
(b) provide a copy of the written record to the company.
(5) The restructuring practitioner must keep a record of the consent for 5 years after the day on which the consent is given.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
For the purposes of paragraph 453J(3)(b) of the Act, the following information is prescribed:
(a) the following details about the company:
(i) the name of the company;
(ii) any trading name of the company;
(iii) the ACN of the company;
(iv) the address of the company’s registered office;
(v) any website maintained by or on behalf of the company;
(vi) the company’s email address (if any);
(b) the following details about the restructuring practitioner:
(i) the restructuring practitioner’s name;
(ii) the address and telephone number of the principal place where the restructuring practitioner practises as a registered liquidator;
(iii) if the restructuring practitioner practises as a registered liquidator as a member of a firm or under a name or style other than the person’s own name—the name of that firm or the name or style under which the person practises;
(iv) the Registered Liquidator Number for the restructuring practitioner as specified on the Register of Liquidators;
(c) the day on which the restructuring of the company began;
(d) the day on which the notice is given to the company;
(e) the reason for terminating the restructuring of the company;
(f) the signature of the restructuring practitioner;
(g) any other information that the restructuring practitioner considers appropriate.
This Subdivision is made for the purposes of subsection 453E(2) of the Act.
The restructuring practitioner for a company under restructuring has the power to investigate the company’s business, property, affairs and financial circumstances for the purposes of:
(a) preparing a declaration under regulation 5.3B.18; or
(b) deciding whether to terminate the restructuring of the company; or
(c) resolving a disagreement under regulation 5.3B.22; or
(d) performing or exercising any other function, duty or power as restructuring practitioner for the company.
(1) This regulation applies in relation to a restructuring practitioner for a company (the replacement practitioner) who is appointed under subsection 456E(1) of the Act.
Replacement practitioner must resolve existing creditor disputes
(2) If:
(a) before the appointment, a notice was given under subregulation 5.3B.22(2) to the restructuring practitioner for the company (the former practitioner) setting out a creditor’s disagreement with the schedule of debts and claims included with the company’s restructuring proposal statement; and
(b) at the time of the appointment, the former practitioner has not given notice under subregulation 5.3B.22(6) or (7) in relation to the disagreement;
the replacement practitioner must give the notice under subregulation 5.3B.22(6) or (7), as the case requires, as soon as practicable after the appointment.
Replacement practitioner must lodge outstanding notices etc.
(3) If:
(a) before the appointment, a restructuring practitioner for the company was required to do a thing under Subdivision B or C of Division 5; and
(b) at the time of the appointment, the thing has not been done;
the replacement practitioner must do the thing within 2 business days after the day on which the replacement practitioner is appointed.
A person who is or has been the restructuring practitioner for a company under restructuring has qualified privilege in respect of a statement that the person has made, whether orally or in writing, in the course of performing or exercising any of the person’s functions and powers relating to the restructuring of the company.
A person who is or has been the restructuring practitioner for a company under restructuring is not subject to any liability to any person in respect of anything done, or omitted to be done, in good faith and without negligence in the exercise or performance, or the purported exercise or performance, of powers, functions or duties under the Act or these regulations relating to the restructuring of the company.
For the purposes of subparagraph 454N(5)(c)(i) of the Act, each of the kinds of contracts, agreements or arrangements referred to in subregulation 5.3A.50(2) is prescribed.
Unless otherwise specified, this Division is made under section 455B of the Act.
(1) A company under restructuring proposes a restructuring plan if:
(a) the company prepares:
(i) a restructuring plan that complies with the requirements in regulation 5.3B.15; and
(ii) a restructuring proposal statement that complies with the requirements in regulation 5.3B.16; and
(b) the company executes the restructuring plan during the proposal period; and
(c) the company’s restructuring practitioner prepares and signs a declaration in accordance with regulation 5.3B.18; and
(d) the restructuring practitioner gives a copy of the restructuring plan, restructuring proposal statement and declaration in accordance with subregulation 5.3B.21(1); and
(e) immediately before the restructuring practitioner gives the copies in accordance with subregulation 5.3B.21(1), regulation 5.3B.24 is satisfied in relation to the company.
(1) A company under restructuring must prepare a restructuring plan that complies with the requirements of this regulation.
(a) be in the form approved under regulation 5.3B.65 (if any); and
(e) specify the date on which the restructuring plan was executed.
(2) The restructuring proposal statement must:
(a) include a schedule of debts and claims; and
(b) be in the form approved under regulation 5.3B.65 (if any); and
(c) contain such information as the form requires.
Restructuring practitioner may extend proposal period
Court may extend proposal period
Notification of extension
(5) Within 2 business days after the day on which the proposal period is extended under subregulation (2) or (4), the restructuring practitioner must:
(a) lodge with ASIC notice of the extension:
(i) in the prescribed form (if any); and
(ii) in accordance with subregulation 5.6.75(4); and
(b) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
(i) the eligibility criteria for restructuring are met in relation to the company; and
(ii) if the restructuring plan is made, the company is likely to be able to discharge the obligations created by the plan as and when they become due and payable;
state that; and
Note: A declaration must not be false or misleading in a material particular, or omit anything that would render it materially false or misleading: see section 1308 of the Act.
(3) The declaration must be signed by the restructuring practitioner.
Offence
for the purpose of assessing the accuracy and completeness of the information provided by the company in the restructuring plan and restructuring proposal statement.
(1) The restructuring practitioner for a company under restructuring commits an offence if:
(a) at any time before the restructuring practitioner prepares a declaration under regulation 5.3B.18 in relation to the company’s restructuring plan:
(i) the restructuring practitioner becomes aware that the information in the plan, or in the restructuring proposal statement that accompanies the plan, is incomplete or inaccurate; and
(ii) the restructuring practitioner has reasonable grounds to believe that, if the plan is made, the matter to which the incompleteness or inaccuracy relates is likely to affect the company’s ability to meet its obligations under the plan; and
(b) the restructuring practitioner does not, as soon as practicable after becoming so aware:
(i) notify the company of the incompleteness or inaccuracy; and
(ii) provide an opportunity for the company to address the incompleteness or inaccuracy.
(2) The restructuring practitioner for a company may cancel the company’s proposal to make a restructuring plan if, before the restructuring plan is made, the restructuring practitioner:
(a) becomes aware that the information in the plan is incomplete or inaccurate, and has reasonable grounds to believe that, if the plan is made, the matter to which the incompleteness or inaccuracy relates is likely to affect the company’s ability to meet its obligations under the plan; or
(ii) in the opinion of the restructuring practitioner, is capable of affecting an affected creditor’s decision whether or not to accept the restructuring plan.
(b) ask each affected creditor to:
(i) give a written statement setting out whether or not the restructuring plan should be accepted; and
(ii) if the creditor agrees with the company’s assessment of the amount of the creditor’s admissible debts or claims—verify the creditor’s admissible debts or claims as set out in the schedule of debts and claims included with the restructuring proposal statement; and
(iii) if the creditor disagrees with the company’s assessment of the amount of the creditor’s admissible debts or claims—notify the restructuring practitioner in accordance with regulation 5.3B.22;
Definitions
(3) In this regulation:
(i) the period of 15 business days beginning on the day the company’s restructuring practitioner gives documents in accordance with subregulation (1) of this regulation; and
(ii) the period beginning on the day the company’s restructuring practitioner gives documents in accordance with subregulation (1) of this regulation and ending on the last day of the period of 5 business days after the day on which the notice under paragraph 5.3B.22(7)(d) is given; or
restructuring plan standard terms means the terms specified in subregulation 5.3B.27(1).
(a) the person is a creditor of a company that is proposing to make a restructuring plan; and
(b) the plan has not been made; and
(c) the person disagrees with the schedule of debts and claims included with the company’s restructuring proposal statement because:
(i) the person’s admissible debts or claims are not specified; or
(ii) the company’s assessment of the person’s admissible debts or claims is incorrect; or
(iii) the person is incorrectly specified as an excluded creditor.
Creditor may notify restructuring practitioner of disagreement
(3) The notice:
(a) may be given:
(i) if the person received a copy of the plan—within 5 business days after the day on which the person receives the plan; or
(ii) if the person otherwise became aware of the plan—within 5 business days after the day on which the person becomes so aware; or
(iii) after the period specified in subparagraph (i) or (ii), if the notice includes a statement setting out the person’s reasons for not giving the notice within that period; and
(b) if the disagreement relates to the person’s admissible debts or claims:
(i) must include detailed particulars of the debt or claim sought to be proved; and
(ii) in the case of a debt, must include a statement of account; and
(iii) must specify the vouchers (if any) by which the statement can be substantiated; and
(c) if the disagreement relates to the person’s status as an excluded creditor—must include detail sufficient to resolve the disagreement.
(4) The restructuring practitioner may, after receiving the notice, request that the person or the directors of the company:
(a) give the restructuring practitioner information about the company’s business, property, affairs and financial circumstances; and
(b) verify the information by statutory declaration.
Restructuring practitioner may refuse to consider disagreement
(5) If the notice is given after the period specified in subparagraph (3)(a)(i) or (ii), the restructuring practitioner may refuse to consider the disagreement if the restructuring practitioner is satisfied that the person did not take all reasonable steps to give notice within that period.
(6) If the restructuring practitioner refuses to consider the disagreement:
(a) the restructuring practitioner is taken to have recommended that the schedule of debts and claims not be varied; and
(b) the restructuring practitioner must give written notice to the company and the person setting out the restructuring practitioner’s reasons for the refusal; and
(c) subregulation (7) does not apply.
Restructuring practitioner must resolve disagreement as soon as practicable
(a) a person gives notice under subregulation (2) of a disagreement to the restructuring practitioner for a company; and
(b) the restructuring practitioner has not refused to consider the disagreement under subregulation (5);
the restructuring practitioner must:
(c) give written notice to the company and the person:
(i) setting out the restructuring practitioner’s recommendations for resolving the disagreement; and
(ii) giving reasons for the recommendations; and
(d) if the restructuring practitioner recommends that the schedule of debts and claims be varied and is of the opinion that the variation is significant—give written notice to the company and as many of the company’s creditors as reasonably practicable:
(i) stating that fact; and
(ii) outlining the creditors’ rights under regulation 5.3B.23.
(1) This regulation applies if:
(a) a company proposes to make a restructuring plan; and
(b) an affected creditor of the company gave a statement under paragraph 5.3B.21(1)(b) in relation to the plan.
(2) At any time before the end of the acceptance period, the creditor may:
(a) withdraw the statement; and
(b) give a new statement under paragraph 5.3B.21(1)(b) in relation to the plan.
(3) A statement may be withdrawn, and a new statement may be given, more than once before the end of the acceptance period.
This regulation is satisfied in relation to a company under restructuring if:
(a) the company has:
(i) paid the entitlements of its employees that are payable; and
(ii) given returns, notices, statements, applications or other documents as required by taxation laws (within the meaning of the Income Tax Assessment Act 1997); or
(b) the company is substantially complying with the matter concerned.
Note: Employee entitlements are defined in subsections 596AA(2) and (3) of the Act and include superannuation contributions payable by the company.
(1) A company’s restructuring plan is accepted if, at the end of the last day of the acceptance period, the majority in value of those creditors from whom the restructuring practitioner for the plan has received a statement under paragraph 5.3B.21(1)(b) stated that the restructuring plan should be accepted.
Note: For the purposes of subparagraph (a)(ii), the purchase price would normally be the price stated in the contract for the purchase of the admissible debt or claim. However, if the amount paid by the person is different from the price stated in the contract, then the purchase price would be the amount that was actually paid.
(2) The restructuring plan is taken to have been made:
(a) if the plan is expressed to be conditional on the occurrence of a specified event within a specified period and the event occurs within that period—on the day after the end of that period; and
(3) A restructuring plan that has been made has the same force and validity as if it were a deed executed by each of the parties to the plan.
Definitions
(4) In this regulation:
(1) A restructuring plan made by a company is taken to include all of the following terms:
(b) if the total amount paid by the company under the plan in respect of those debts or claims is insufficient to meet those debts or claims in full, those debts or claims will be paid proportionately;
(i) if the creditor does not realise the creditor’s security interest while the plan is in force, the creditor is taken, for the purposes of working out the amount payable to the creditor under the plan, to be a creditor only to the extent (if any) by which the amount of the creditor’s admissible debt or claim exceeds the value of the creditor’s security interest; and
(ii) if the creditor realises the creditor’s security interest while the plan is in force, the creditor is taken, for the purposes of working out the amount payable to the creditor under the plan, to be a creditor only to the extent of any balance due to the creditor after deducting the net amount realised.
(2) A restructuring plan is void to the extent that it is inconsistent with any of the matters set out in subregulation (1).
(b) any person who has an admissible debt or claim in relation to the plan.
(3) If a creditor of the company is a secured creditor, the plan is binding on the creditor:
(5) The fact that a restructuring plan has been made does not affect a right that an owner or lessor of property has in relation to that property, unless:
(a) the owner or lessor accepted the proposal to make the plan and the plan affects that right; or
(b) the Court so orders under subregulation 5.3B.64(4).
(6) Subregulation (5) does not apply in relation to an owner or lessor of PPSA retention of title property of the company.
Note: Subregulation (3) applies in relation to an owner or lessor of PPSA retention of title property of the company. Such an owner or lessor is a secured creditor of the company (see section 51F of the Act (meaning of PPSA retention of title property)).
(c) if both of the following conditions are satisfied:
(i) the plan is expressed to be subject to the occurrence of a specified event within a specified period of no longer than 10 business days after the day on which the plan is made;
(ii) the event does not occur within that period;
on the next business day after the end of that period; or
on the next business day after the end of that period; or
(e) on the day on which an administrator of the company is appointed under section 436A, 436B or 436C of the Act; or
whichever happens first.
(3) If a company’s restructuring plan terminates because of the happening of an event mentioned in paragraph (1)(b), (c), (d), (e) or (f), any admissible debt or claim that has not been dealt with in accordance with the plan is taken to be due and payable on the business day after the day on which the termination occurs.
If a company under restructuring makes a restructuring plan, the company’s restructuring practitioner is to be the restructuring practitioner for the restructuring plan unless the company, by resolution of the board, appoints someone else to be the restructuring practitioner for the plan.
(2) In subregulation (1):
appointer, in relation to the restructuring practitioner for a company’s restructuring plan, means:
(a) if the restructuring practitioner was appointed by the Court under Division 90 of Schedule 2 to the Act (review of the external administration of a company) or subregulation (4) of this regulation—the Court; or
(b) the company.
(1) This regulation applies in relation to a person if:
(a) the person is the restructuring practitioner for a company’s restructuring plan; and
(b) either:
(i) the person was not the company’s restructuring practitioner immediately before the person was appointed as the restructuring practitioner for the plan; or
(ii) the person was appointed as the restructuring practitioner for the plan under subregulation 5.3B.34(1) otherwise than by the Court.
Note: Failure to comply with this subregulation is an offence (see subsection 1311(1) of the Act).
Note: Failure to comply with this subregulation is an offence (see subsection 1311(1) of the Act).
Note: Failure to comply with this subregulation is an offence (see subsection 1311(1) of the Act).
Note: Failure to comply with this subregulation is an offence (see subsection 1311(1) of the Act).
Note: Failure to comply with this subregulation is an offence (see subsection 1311(1) of the Act).
Note: Failure to comply with this subregulation is an offence (see subsection 1311(1) of the Act).
The functions of the restructuring practitioner for a company’s restructuring plan are:
(a) to receive money from, and hold money on trust for, the company; and
(b) to pay the money to creditors in accordance with the plan; and
(c) if requested to do so by the company’s directors:
(i) to realise the property of the company that is available to pay creditors in accordance with the plan; and
(ii) to distribute the proceeds of the realisation of the property among the creditors in accordance with the plan; and
(d) to answer questions about the performance or exercise of any of the restructuring practitioner’s functions and powers as restructuring practitioner for the plan; and
(e) to do anything that is incidental to the performance or exercise of those functions and powers; and
(f) to do anything else that is necessary or convenient for the purpose of administering the plan.
(1) This regulation applies in relation to a restructuring practitioner for a restructuring plan (the replacement practitioner) who is appointed under subregulation 5.3B.34(1).
(2) If:
(a) before the appointment, a restructuring practitioner for the plan was required to do a thing under:
(i) Division 4; or
(ii) Subdivision B or C of Division 5; and
(b) at the time of the appointment, the thing has not been done;
the replacement practitioner must do the thing within:
(c) 2 business days after the day on which the replacement practitioner is appointed; or
(d) if the requirement arose because the restructuring practitioner was given notice or became aware of a thing—within 2 business days after the day on which the replacement practitioner is given the notice or becomes so aware.
(1) The restructuring practitioner for a company’s restructuring plan must not dispose of:
(a) property of the company that is subject to a security interest; or
(b) property (other than PPSA retention of title property) that is used or occupied by, or is in the possession of, the company but of which someone else is the owner or lessor.
Note: PPSA retention of title property is subject to a PPSA security interest, and so is covered by paragraph (a) (see definition of PPSA retention of title property in section 51F of the Act).
(2) Subregulation (1) does not prevent a disposal:
(a) in the ordinary course of the company’s business; or
(b) with the written consent of the secured party, owner or lessor, as the case may be; or
(c) with the leave of the Court.
(3) The Court may only give leave under paragraph (2)(c) if satisfied that arrangements have been made to adequately protect the interests of the secured party, owner or lessor, as the case may be.
(4) If the restructuring practitioner proposes to dispose of property under paragraph (2)(a), the Court may, by order, direct the restructuring practitioner not to carry out that proposal.
(5) The Court may only make an order under subregulation (4) on the application of:
(a) if paragraph (1)(a) applies—the secured party; or
(b) if paragraph (1)(b) applies—the owner or lessor, as the case may be.
(6) The Court may only make an order under subregulation (4) if it is not satisfied that arrangements have been made to protect adequately the interests of the applicant for the order.
(7) If:
(a) a company has made a restructuring plan that has not terminated; and
(b) property of the company is subject to a security interest; and
(c) the restructuring practitioner disposes of the property;
the disposal extinguishes the security interest.
(8) For the purposes of paragraph (2)(a), if:
(a) property is used or occupied by, or is in the possession of, a company; and
(b) another person is the owner of the property; and
(c) either:
(i) the property is PPSA retention of title property; or
(ii) the property is subject to a retention of title clause under a contract; and
(d) the owner demands the return of the property;
a disposal of the property that occurs after the demand is made does not mean that the disposal is not in the ordinary course of the company’s business.
When performing a function or duty, or exercising a power, as restructuring practitioner for a company’s restructuring plan, the restructuring practitioner is taken to be acting as the company’s agent.
A person who is or has been the restructuring practitioner for a company’s restructuring plan has qualified privilege in respect of a statement that the person has made, whether orally or in writing, in the course of performing or exercising any of the person’s functions and powers relating to the plan.
A person who is or has been the restructuring practitioner for a company’s restructuring plan is not subject to any liability to any person in respect of anything done, or omitted to be done, in good faith and without negligence in the exercise or performance, or the purported exercise or performance, of powers, functions or duties under the Act or these regulations relating to the plan.
A person who is or has been the restructuring practitioner for a company’s restructuring plan is entitled to be indemnified out of the company’s property (other than any PPSA retention of title property subject to a PPSA security interest that is perfected within the meaning of the Personal Property Securities Act 2009) for:
(a) any debts or liabilities incurred, or damages or losses sustained, in good faith and without negligence, by the restructuring practitioner:
(i) in the performance or purported performance of the restructuring practitioner’s functions or duties; or
(ii) in the exercise or purported exercise of the restructuring practitioner’s powers; and
(b) the remuneration to which the restructuring practitioner is entitled under Insolvency Practice Rules made under Subdivision DA of Division 60 of Schedule 2 to the Act.
General rule
(1) Subject to section 556 of the Act, a right of indemnity under regulation 5.3B.43 has priority over:
(a) all the company’s unsecured debts; and
(b) any debts of the company secured by a PPSA security interest in property of the company if, when the restructuring of the company begins, the security interest is vested in the company because of the operation of any of the following provisions:
(i) section 267 or 267A of the Personal Property Securities Act 2009 (property subject to unperfected security interests);
(ii) section 588FL of the Act (collateral not registered within time); and
(c) subject otherwise to this section—debts of the company secured by a circulating security interest in property of the company.
Debts secured by circulating security interests—receiver appointed before the beginning of restructuring etc.
(2) A right of indemnity under regulation 5.3B.43 does not have priority over debts of the company that are secured by a circulating security interest in property of the company, except so far as the secured party agrees, if:
(a) before the making of the restructuring plan, the secured party:
(i) appointed a receiver of property of the company under a power contained in an instrument relating to the security interest; or
(ii) obtained an order for the appointment of a receiver of property of the company for the purpose of enforcing the security interest; or
(iii) entered into possession, or assumed control, of property of the company for that purpose; or
(iv) appointed a person so as to enter into possession or assume control (whether as agent for the secured party or for the company); and
(b) the receiver or person is still in office, or the secured party is still in possession or control of the property.
Debts secured by circulating security interests—receiver appointed after restructuring plan made etc.
(3) Subregulation (4) applies if:
(a) debts of the company are secured by a circulating security interest in property of the company; and
(b) after the company’s restructuring plan is made, the secured party, consistently with Part 5.3B of the Act:
(i) appoints a receiver of property of the company under a power contained in an instrument relating to the security interest; or
(ii) obtains an order for the appointment of a receiver of property of the company for the purpose of enforcing the security interest; or
(iii) enters into possession, or assumes control, of property of the company for that purpose; or
(iv) appoints a person to enter into possession or assume control (whether as agent for the secured party or for the company).
(4) A right of indemnity of the restructuring practitioner under regulation 5.3B.43 has priority over those debts only in so far as it is a right of indemnity for debts incurred, or remuneration accruing, before written notice of the appointment, or of the entering into possession or assuming of control, as the case may be, was given to the restructuring practitioner.
Debts secured by circulating security interests—priority over right of indemnity in relation to repayment of money borrowed etc.
(5) A right of indemnity under regulation 5.3B.43 does not have priority over debts of the company that are secured by a circulating security interest in property of the company, except so far as the secured party consents in writing, to the extent that the right of indemnity relates to debts incurred for:
(a) the repayment of money borrowed; or
(b) interest in respect of money borrowed; or
(c) borrowing costs.
(1) To secure a right of indemnity under regulation 5.3B.43, the restructuring practitioner has a lien on the company’s property.
(2) A lien under subregulation (1) has priority over another security interest only in so far as the right of indemnity under regulation 5.3B.43 has priority over debts secured by the other security interest.
This Division is made for the purposes of subsection 456G(1) of the Act.
(1) The directors of a company that has made a restructuring plan that has not terminated must, within 2 business days after the day on which the directors become aware of the happening of an event mentioned in subregulation (4), give written notice of the event to the restructuring practitioner for the plan.
(2) The restructuring practitioner must, within 2 business days after the day on which the restructuring practitioner receives the notice:
(a) lodge with ASIC notice in the prescribed form (if any) of the happening of the event; and
(b) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
(3) If:
(a) a restructuring practitioner for the plan (the replacement practitioner) is appointed under subregulation 5.3B.34(1); and
(b) at the time of the appointment, notice of the happening of the event has not been lodged or given in accordance with subregulation (2);
the directors must give written notice of the event to the replacement practitioner within 2 business days after the day on which the replacement practitioner is appointed.
(4) The events that must be notified are as follows:
(a) an administrator of the company is appointed under section 436A, 436B or 436C of the Act;
This Division is made for the purposes of section 457A of the Act.
(1) Within 5 business days after the day on which the restructuring of a company begins or such longer period as the company’s restructuring practitioner allows, the directors of the company must give to the restructuring practitioner a declaration in accordance with this regulation.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(2) The declaration must:
(a) be in the form approved under regulation 5.3B.65 (if any); and
(b) state whether, in the directors’ opinion, there are reasonable grounds to believe that the company has entered into a transaction that would be voidable under section 588FE of the Act if:
(i) the company were being wound up because the company had resolved by special resolution that it be wound up voluntarily; and
(ii) the resolution had been passed on the day on which the declaration is given; and
(iii) the company were under restructuring immediately before the company passed the resolution; and
(iv) the relation‑back day were the day on which the restructuring of the company began;
other than a transaction that would be an unfair preference; and
(c) state whether, in the directors’ opinion, there are reasonable grounds to believe that the eligibility criteria for restructuring were met in relation to the company at the time the restructuring began, and set out the reasons for that opinion.
Note: A declaration must not be false or misleading in a material particular, or omit anything that would render it misleading in a material respect: see section 1308 of the Act.
(3) The declaration must be signed by each director of the company.
(a) in the prescribed form (if any); and
(b) in accordance with subregulation 5.6.75(4).
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(i) the proposal period in relation to the company; and
(ii) the amount of time in which an affected creditor may decide whether a proposed restructuring plan should be accepted; and
(iii) how an affected creditor may verify or dispute the creditor’s admissible debts or claims;
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
Within 2 business days after the day on which the appointment of a person as restructuring practitioner for a company terminates, notice in the prescribed form (if any) of the termination must be lodged with ASIC:
(a) if the termination is because of the death of the person—by the company; and
(b) otherwise—by the person.
Within 2 business days after the day on which the restructuring practitioner for a company gives, in accordance with subregulation 5.3B.21(1), a copy of:
(a) the company’s restructuring plan; and
(b) the company’s restructuring proposal statement; and
(c) the declaration prepared by the restructuring practitioner under regulation 5.3B.18;
the restructuring practitioner must lodge with ASIC in the prescribed form (if any):
(d) the plan; and
(e) the restructuring proposal statement; and
(f) the declaration.
(a) lodge with ASIC notice in the prescribed form (if any) of:
(i) the ending of the restructuring; and
(ii) the reason for the ending; and
(b) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(a) in the prescribed form (if any); and
(b) in accordance with subregulation 5.6.75(4).
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(i) the total value of the debts and claims set out in the schedule of debts and claims included with the company’s restructuring proposal statement; and
(ii) the number of affected creditors to whom the restructuring practitioner gave a copy of the documents mentioned in paragraph 5.3B.21(1)(a); and
(iii) the proportion in value of affected creditors that gave, before the end of the acceptance period, a statement under paragraph 5.3B.21(1)(b) that the plan should be accepted.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
Director to notify restructuring practitioner
(1) If a director of a company that has made a restructuring plan becomes aware that:
(a) there has been a contravention of the plan by a person bound by the plan (who may be the director); or
(b) there is likely to be a contravention of the plan by a person bound by the plan (who may be the director);
the director must, within 2 business days after the day on which the director becomes aware of the contravention or likely contravention, give written notice of the contravention or likely contravention to the restructuring practitioner for the plan.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
Restructuring practitioner to notify company’s creditors
(2) If the restructuring practitioner for a restructuring plan receives notice under subregulation (1), or otherwise becomes aware, that:
(a) there has been a contravention of the plan by a person bound by the plan (who may be the restructuring practitioner); or
(b) there is likely to be a contravention of the plan by a person bound by the plan (who may be the restructuring practitioner);
the restructuring practitioner must, within 2 business days after the day on which the restructuring practitioner receives the notice or becomes so aware:
(c) lodge with ASIC notice in the prescribed form (if any) of the contravention or likely contravention; and
(d) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(a) the directors of the company must, within 2 business days after the day on which the directors become aware of the happening of the event, give written notice of the termination to the person (the former practitioner) who was the restructuring practitioner for the plan immediately before the termination; and
(b) the former practitioner must, within 2 business days after the day on which the former practitioner receives the notice:
(i) lodge with ASIC notice in the prescribed form (if any) of the termination; and
(ii) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(a) the directors of the company must, within 2 business days after the day on which the directors become aware of the happening of the event, give written notice of the termination and the reason for the termination to the person (the former practitioner) who was the restructuring practitioner for the plan immediately before the termination; and
(b) the former practitioner must, within 2 business days after the day on which the former practitioner receives the notice:
(i) lodge with ASIC notice in the prescribed form (if any) of the termination and the reason for the termination; and
(ii) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
Within 2 business days after the day on which the appointment of a person as restructuring practitioner for a company’s restructuring plan terminates, notice in the prescribed form (if any) of the termination must be lodged with ASIC:
(a) if the termination is because of the death of the person—by the company; and
(b) otherwise—by the person.
This Division is made for the purposes of subsection 458B(1) of the Act.
(1) This regulation applies if:
(a) a company proposes to make a restructuring plan; and
(c) the restructuring practitioner:
(i) refuses to consider the disagreement under subregulation 5.3B.22(5); or
(ii) makes, or refuses to make, a recommendation under subregulation 5.3B.22(7) to vary the schedule of debts and claims.
(2) The Court may, on the application of the company or a creditor of the company, make one or more of the following orders:
(a) that the restructuring practitioner consider the disagreement and make a recommendation in accordance with subregulation 5.3B.22(7);
(b) that the schedule of debts and claims be varied as set out in the order;
(c) that the acceptance period for the proposal to make the restructuring plan be extended.
(a) lodge with ASIC notice in the prescribed form (if any):
(i) setting out the terms of the order; and
(ii) outlining the creditors’ rights under regulation 5.3B.23; and
(b) give a copy of the notice to as many of the company’s creditors as reasonably practicable.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(1) This regulation applies where:
(a) a company is under restructuring; or
(b) a company makes a restructuring plan that has not terminated.
(2) Subject to subsection 454C(3) of the Act, the Court may order a secured creditor of the company not to realise or otherwise deal with the security interest, except as permitted by the order.
(3) The Court may only make an order under subregulation (2) if satisfied that:
(a) for the creditor to realise or otherwise deal with the security interest would have a material adverse effect on achieving the purposes of the plan; and
(b) having regard to:
(i) the terms of the plan; and
(ii) the terms of the order; and
(iii) any other relevant matter;
the creditor’s interests will be adequately protected.
(4) The Court may order the owner or lessor of property that is used or occupied by, or is in the possession of, the company not to take possession of the property or otherwise recover it.
(5) Subregulation (4) does not apply in relation to PPSA retention of title property of the company.
(6) The Court may only make an order under subregulation (4) if satisfied that:
(a) for the owner or lessor to take possession of the property or otherwise recover it would have a material adverse effect on achieving the purposes of the plan; and
(b) having regard to:
(i) the terms of the plan; and
(ii) the terms of the order; and
(iii) any other relevant matter;
the interests of the owner or lessor will be adequately protected.
(7) An order under this regulation may be made subject to conditions.
(8) An order under this regulation may only be made on the application of:
(a) if paragraph (1)(a) applies—the restructuring practitioner for the company; or
(b) if paragraph (1)(b) applies—the restructuring practitioner for the plan.
ASIC may, in writing, approve a form for the purposes of a provision of this Part.
2 Paragraph 5.6.75(1)(a)
After “5.3A,”. insert “5.3B,”.
3 Subparagraph 9.1.02(a)(vii)
Repeal the subparagraph, substitute:
(vii) any scheme of arrangement it has entered into with its creditors, its placement under voluntary administration, a deed of company arrangement, restructuring or receivership, or its liquidation;
1 Before regulation 5.4.01
Insert:
(1) For the purposes of paragraph (a) of the definition of statutory minimum in section 9 of the Act, the amount prescribed is:
(a) in relation to a company that is eligible for temporary restructuring relief—$20,000; and
(b) otherwise—$2,000.
(2) For the purposes of paragraph (a) of the definition of statutory period in section 9 of the Act, the period prescribed is:
(a) in relation to a company that is eligible for temporary restructuring relief—6 months; and
(b) otherwise—21 days.
(3) This regulation is repealed at the end of the period of 7 months starting on the day this regulation commences.
2 Form 509H (note 2) of Schedule 2
Repeal the note, substitute:
2. The amount of the debt or, if there is more than one debt, the total of the amounts of the debts, must exceed the statutory minimum. The statutory minimum is $2,000 or a greater amount prescribed by the regulations. For a 7‑month period in 2021, a greater amount of $20,000 is prescribed in relation to a company that is eligible for temporary restructuring relief (see the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020).
3 Form 509H (note 5) of Schedule 2
Repeal the note, substitute:
5. The statutory period is 21 days or a longer period prescribed by the regulations. For a 7‑month period in 2021, a longer period of 6 months is prescribed in relation to a company that is eligible for temporary restructuring relief (see the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020).
1 Before regulation 5.5.01
Insert:
2 At the end of Part 5.5
Add:
For the purposes of subsection 498(3) of the Act, the following information is prescribed:
(a) whether, in the directors’ opinion, there are reasonable grounds to believe that the company has entered into a transaction that would be voidable under section 588FE of the Act, other than a transaction that would be an unfair preference;
(b) whether, in the directors’ opinion, there are reasonable grounds to believe that, on the declaration being given, the eligibility criteria for the simplified liquidation process will be met in relation to the company, and the reasons for that opinion.
(1) For the purposes of paragraph 500AA(1)(d) of the Act, the test for eligibility is that the total liabilities of the company on the day on which the triggering event occurred must not exceed $1 million.
(2) For the purposes of paragraph 500AA(1)(e) of the Act, a period of 7 years is prescribed.
(3) For the purposes of paragraph 500AA(1)(f) of the Act, a period of 7 years is prescribed.
(4) For the purposes of paragraph 500AA(2)(b) of the Act, a prescribed circumstance is that:
(a) the other company is a related body corporate of the company in relation to which the eligibility criteria are to be met; and
(b) the other company is, or has been:
(i) under restructuring; or
(ii) the subject of a simplified liquidation process; and
(c) if subparagraph (b)(i) applies—the restructuring practitioner for the other company was appointed no more than 20 business days before the day on which the company in relation to which the eligibility criteria are to be met began to follow the simplified liquidation process; and
(d) if subparagraph (b)(ii) applies—the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the company in relation to which the eligibility criteria are to be met began to follow the simplified liquidation process.
(5) For the purposes of paragraph 500AA(2)(c) of the Act, a prescribed circumstance is that:
(a) the company has been under restructuring; and
(b) the restructuring terminated no more than 20 business days before the day on which the company began to follow the simplified liquidation process.
Definitions
(6) In this regulation:
liability means any liability or obligation.
(1) This regulation is made for the purposes of paragraph 500AE(3)(b) of the Act.
(2) An unfair preference of a company is not voidable despite subsection 588FE(2) of the Act, provided either subregulation (3) or (4) is satisfied.
(3) This subregulation is satisfied if:
(a) the company is subject to the simplified liquidation process; and
(b) the transaction was entered into, or an act was done for the purposes of giving effect to it, before the day that is 3 months before the relation‑back day; and
(c) no creditor under the transaction is a related entity of the company.
(4) This subregulation is satisfied if:
(a) the company is subject to the simplified liquidation process; and
(b) the transaction was entered into, or an act was done for the purposes of giving effect to it:
(i) during the 3 months ending on the relation‑back day; or
(ii) after that day but on or before the day when the winding up began; and
(c) either:
(i) the transaction results in the creditor receiving from the company no more than $30,000 in value; or
(ii) if the transaction forms part of a series of related transactions, all of the related transactions result in the creditor receiving from the company no more than $30,000 in value; and
(d) no creditor under the transaction is a related entity of the company.
(1) This regulation is made for the purposes of paragraph 500AE(3)(f) of the Act and applies in relation to the liquidator of a company that is subject to the simplified liquidation process.
(2) If, in the opinion of the liquidator, there are reasonable grounds to believe that:
(a) a past or present officer or employee, or a member or contributory, of the company; or
(b) a person who has taken part in the formation, promotion, administration, management or winding up of the company;
may have engaged in conduct constituting an offence under a law of the Commonwealth or a State or Territory in relation to the company that has had, or is likely to have, a material adverse effect on the interests of the creditors as a whole or of a class of creditors as a whole, the liquidator must:
(c) as soon as practicable, and in any event within 6 months, after first forming the opinion, lodge with ASIC a report in the prescribed form (if any) with respect to the matter and state in the report whether the liquidator proposes to make an application for an examination or order under section 597 of the Act; and
(d) give ASIC such information, and give to it such access to and facilities for inspecting and taking copies of any documents, as ASIC requires.
(3) The liquidator may also, if the liquidator thinks fit, lodge further reports specifying any other matter that, in the liquidator’s opinion, it is desirable to bring to the notice of ASIC.
(4) If it appears to the Court, in the course of winding up a company, that:
(a) a person mentioned in paragraph (2)(a) or (b) has engaged in conduct constituting an offence under a law of the Commonwealth or a State or Territory in relation to the company that has had, or is likely to have, a material adverse effect on the interests of the creditors as a whole or of a class of creditors as a whole; and
(b) the liquidator has not lodged with ASIC a report with respect to the matter;
the Court may, on the application of a person interested in the winding up, direct the liquidator to lodge such a report.
(1) This regulation is made for the purposes of paragraph 500AE(3)(f) of the Act.
(2) If the liquidator of a company adopts the simplified liquidation process on a day, the liquidator must, within 2 business days after that day, lodge with ASIC:
(a) notice in the prescribed form (if any) of the adoption; and
(b) a copy of the declaration given by the directors of the company to the liquidator in accordance with section 498 of the Act.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
(1) For the purposes of paragraph 500AC(1)(b) of the Act, a prescribed circumstance is that the liquidator believes on reasonable grounds that:
(a) the company, or a director of the company, has engaged in conduct; and
(b) the conduct involved fraud or dishonesty; and
(c) the conduct has had, or is likely to have, a material adverse effect on the interests of the creditors as a whole or of a class of creditors as a whole.
(2) The liquidator is taken to have ceased to follow the simplified liquidation process on the day on which the liquidator first held the belief.
(1) This regulation is made for the purposes of subsection 500AC(2) of the Act.
Notice of cessation of process
(2) If the liquidator of a company ceases to follow the simplified liquidation process on a day, the liquidator must, within 2 business days after that day, lodge with ASIC notice in the prescribed form (if any) of the cessation.
Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
Validity of things done during process
(3) Subject to this regulation, the cessation of the simplified liquidation process in relation to a company does not affect the validity of anything that was done in good faith in relation to the company before the cessation.
Reports by liquidator
(4) If, at any time during the simplified liquidation process, it appeared to the liquidator that one or more of the circumstances in paragraph 533(1)(a), (b) or (c) existed, section 533 of the Act applies in relation to the liquidator as if paragraph 533(1)(d) were modified by omitting “within 6 months” and substituting “within 6 months after the day on which the simplified liquidation process in relation to the company ended”.
For the purposes of paragraph 500AD(b) of the Act, a person who is a related entity, and a creditor, of the company is not to be taken into account.
3 Before subregulation 5.6.39(1)
Insert:
Companies not subject to the simplified liquidation process
4 Subregulation 5.6.39(1)
Omit “A liquidator”, substitute “Subject to subregulations (1A) and (1B), a liquidator”.
5 After subregulation 5.6.39(1)
Insert:
Companies subject to the simplified liquidation process
(1A) Subregulation (1) does not apply in relation to a liquidator of a company that is subject to the simplified liquidation process.
(1B) A liquidator of a company that is subject to the simplified liquidation process must fix a single day that is 14 days after the day on which notice is given in accordance with subregulation (2), on or before which a creditor may submit particulars of his or her debt or claim.
6 Before subregulation 5.6.39(2)
Insert:
Notice requirements
7 Subregulations 5.6.39(2) and (3)
Omit “The notice”, substitute “A notice under subregulation (1) or (1B)”.
8 Paragraph 5.6.39(3)(d)
After “subregulation (1)”, insert “or (1B), as the case requires”.
9 At the end of regulation 5.6.39
Add:
(4) A notice under subregulation (1B) may include a requirement that all, or a specified class, of debts or claims must be proved formally.
10 Before subregulation 5.6.48(1)
Insert:
Companies not subject to the simplified liquidation process
11 Subregulation 5.6.48(1)
Omit “A liquidator”, substitute “Subject to subregulation (1A), a liquidator”.
12 After subregulation 5.6.48(1)
Insert:
Companies subject to the simplified liquidation process
(1A) Subregulation (1) does not apply in relation to a liquidator of a company that is subject to the simplified liquidation process.
Note: A notice given under subregulation 5.6.39(1B) may include a requirement that the creditors of a company that is subject to the simplified liquidation process must formally prove all or a specified class of debts or claims (see subregulation 5.6.39(4)).
13 Before subregulation 5.6.48(2)
Insert:
Notice requirements
14 Subregulation 5.6.48(2)
Omit “the notice”, substitute “a notice under subregulation (1)”.
15 Subregulation 5.6.48(3)
Omit “The notice”, substitute “A notice under subregulation (1)”.
16 Before subregulation 5.6.48(4)
Insert:
Failure to comply with liquidator’s requirements
17 Subregulation 5.6.65(1)
Omit “The liquidator”, substitute “Subject to subregulation (1A), the liquidator”.
18 After subregulation 5.6.65(1)
Insert:
(1A) The requirement in subregulation (1) that the notice must be given not more than 2 months before the intended date does not apply in relation to a liquidator of a company that is subject to the simplified liquidation process.
19 After regulation 5.6.67
Insert:
The liquidator of a company that is subject to the simplified liquidation process may declare and distribute a dividend only once among creditors whose debts or claims have been admitted.
20 At the end of regulation 5.6.68
Add:
(3) This regulation does not apply in relation to a creditor of a company that is subject to the simplified liquidation process.
21 In the appropriate position in Chapter 10
Insert:
(1) The amendments made by Schedule 3 to the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020 apply in relation to the winding up of a company because of a triggering event that occurs on or after the commencement of that Schedule.
(2) In this regulation:
triggering event has the same meaning as in section 489F of the Act (as in force on the commencement of Schedule 3 to the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020).
1 Regulation 5.6.11A
Repeal the regulation.
2 Subregulation 5.6.48(2) (note)
Repeal the note.
3 Subregulation 5.6.53(1) (note)
Repeal the note.
4 Subregulation 5.6.54(1) (note)
Repeal the note.
5 Subregulation 5.6.55(3) (note)
Repeal the note.
6 Subregulation 5.6.59(1) (note)
Repeal the note.
7 Subregulation 5.6.62(1) (note)
Repeal the note.
8 Subregulation 5.6.65(1) (note)
Repeal the note.
9 Subregulation 5.6.66(1) (note)
Repeal the note.
10 Subregulation 5.6.66(3) (note)
Repeal the note.
11 Subregulation 5.6.75(6)
Repeal the regulation.
1 Clause 1 of Schedule 1 (table item 12)
Repeal the item, substitute:
12 | On lodging an application under section 20‑5 of Schedule 2 to the Corporations Act for registration as a liquidator: |
|
| (a) if the application is the first application under section 20‑5 of Schedule 2 to the Corporations Act lodged by the applicant in a calendar year; or | no fee |
| (b) in any other case | $2,200 |
2 Clause 1 of Schedule 1 (table item 13, column 2)
Omit “$1,300”, substitute “no fee”.
3 Clause 1 of Schedule 1 (after table item 86)
Insert:
86A | On application for ASIC to give a direction under paragraph 456C(4)(b) | $156 |
4 Clause 1 of Schedule 1 (table item 12)
Repeal the item, substitute:
12 | On lodging an application under section 20‑5 of Schedule 2 to the Corporations Act for registration as a liquidator | $2,200 |
5 Clause 1 of Schedule 1 (table item 13, column 2)
Omit “no fee”, substitute “$1,300”.