Corporations (Aboriginal and Torres Strait Islander) Consequential, Transitional and Other Measures Act 2006 (125 of 2006)

Schedule 3   Transitional provisions

Part 3   Matters pending under old Act immediately before commencement

Division 6   Administrations

88   Show cause notice given under subsection 71(1) of the old Act

(1) This item applies if, before commencement:

(a) the ACA Registrar had served a notice on the public officer of a transitional corporation under subsection 71(1) of the old Act; and

(b) one of the following is satisfied:

(i) the period specified in the notice as the period within which the corporation is to show cause why an Administrator should not be appointed (the show cause period ) had not ended;

(ii) the show cause period had ended but the ACA Registrar had not decided whether to appoint an Administrator;

(iii) the ACA Registrar had decided to appoint an Administrator but the Minister had not approved the appointment of the Administrator;

(iv) the Minister had approved the appointment of an Administrator but the ACA Registrar had not appointed the Administrator.

(2) The notice is taken to have:

(a) been given by the CATSI Registrar to the transitional corporation under subsection 487-10(1) of the new Act; and

(b) invited the corporation to show cause, within the show cause period, why the CATSI Registrar should not determine that the corporation is to be under special administration.

(3) If the ACA Registrar had not, before commencement, decided to appoint an Administrator, the CATSI Registrar must, before deciding whether to make a determination under subsection 487-1(1) of the new Act that the transitional corporation is to be under special administration, consider:

(a) any representations that the transitional corporation made to the ACA Registrar, within the show cause period and before commencement, in response to the notice; and

(b) any representations the transitional corporation makes to the CATSI Registrar, within the show cause period and after commencement, in response to the notice.

Note: The grounds to be applied in determining whether to appoint a special administrator will be the grounds specified in the new Act.

(4) The CATSI Registrar may determine, under subsection 487-1(1) of the new Act, that the transitional corporation is to be under special administration without the Minister's approval.

(5) If the ACA Registrar had, before commencement, decided to appoint an Administrator, the CATSI Registrar may determine, under subsection 487-1(1) of the new Act, that the transitional corporation is to be under special administration without having to be satisfied that at least one of the grounds set out in subsection 487-5(1) of the new Act is satisfied.

Note 1: To have decided to appoint an Administrator under the old Act, the ACA Registrar must have been satisfied that at least one of the grounds set out in subsection 71(2) of the old Act had been established.

Note 2: Without subitem (5), subsection 487-1(4) of the new Act would require the CATSI Registrar to make a fresh assessment of the grounds set out in section 487-5 of that Act before proceeding to make the determination under subsection 487-1(1) of that Act.