Senate

Statute Law Revision Bill (No. 2) 2006

Explanatory Memorandum

(Circulated by authority of the Attorney-General, the Honourable Philip Ruddock MP)

Schedule 4 - Removing references to official managers and official management

Part 5.3 of the Corporations Act 1989 used to provide for an official manager to be appointed by a company's creditors to assume management of the company for a period of up to three years following a resolution of the directors that the company was unable to pay its debts as and when they become due and payable. Part 5.3 was repealed by section 56 of the Corporate Law Reform Act 1992 and replaced by Part 5.3A, which has now become Part 5.3A of the Corporations Act 2001 . Part 5.3A provides for an administrator to be appointed, and for a company to be placed under administration, with a view to executing a deed of company arrangement, if the company is insolvent, or is likely to become insolvent at some future time.

There continue to be a number of references to official managers and official management on the statute book. Because companies have not been able to be placed under official management for such a long time, the fact that an official manager has been appointed to assume management of a company is now an irrelevant consideration, and references to official managers and official management are now obsolete.

Schedule 4 makes amendments to a variety of legislation to remove those references from the statute book.


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