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 1456   WHAT HAPPENS WHEN ONE OF THE BODIES RECEIVES A RETIREMENT NOTICE  

1456(1)  [Two months]  

If one of the bodies receives a retirement notice it must, within 2 months, decide either to:

(a)  retire from the office it holds; or

(b)  lodge a registration application in relation to the undertaking naming itself as the proposed responsible entity.

The body must lodge a notice of its decision with ASIC.

Note:

For the powers of the body if it decides to become the responsible entity, see section 1460.

1456(2)  [Body decides to retire]  

If the body decides to retire:

(a)  its retirement takes effect if, and only if, the undertaking becomes a registered scheme; and

(b)  the body must, as soon as practicable after making its decision, 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

(c)  the body must 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.

1456(3)  [Application to Court]  

If, at the meeting held under paragraph (2)(b), 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.