THE CORPORATIONS LAW

CHAPTER 11 - APPLICATION AND TRANSITIONAL PROVISIONS

PART 11.2 - COMMENCEMENT AND APPLICATION OF CERTAIN CHANGES TO THIS LAW

Division 11 - Changes resulting from the Managed Investments Act 1998

SECTION 1457   WHAT HAPPENS IF NEITHER OF THE BODIES GIVES A RETIREMENT NOTICE  

1457(1)  [No notice]  

If neither of the bodies gives a retirement notice during the first year after the commencement, the management company must:

(a)  as soon as practicable after the end of that year, convene a meeting of the holders of the prescribed interests to:

(i) choose a proposed responsible entity for the purpose of making a registration application; or

(ii) decide that the undertaking is to be wound up; and

(b)  lodge a notice with ASIC setting out the outcome of the meeting.

Note 1:

For the powers of the proposed responsible entity, see section 1460.

Note 2: For the procedure at the meeting, see section 1460.

1457(1A)  [Compliance plan]  

A resolution passed under subparagraph (1)(a)(i) may direct the proposed responsible entity to lodge with the registration application a compliance plan that provides for scheme property to be held by a person other than the responsible entity, or a person that is not related to the responsible entity, as the responsible entity's agent.

1457(2)  [Application to Court]  

If, at the meeting, the holders of the prescribed interests do not either choose a proposed responsible entity or decide that the undertaking is to be wound up, the management company may apply to the Court for an order directing it to wind up the scheme.