CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT  

Division 1 - Preliminary  

SECTION 435C   WHEN ADMINISTRATION BEGINS AND ENDS  

435C(1)  
The administration of a company:


(a) begins when an administrator of the company is appointed under section 436A , 436B or 436C ; and


(b) ends on the happening of whichever event of a kind referred to in subsection (2) or (3) happens first after the administration begins.

435C(2)  
The normal outcome of the administration of a company is that:


(a) a deed of company arrangement is executed by both the company and the deed ' s administrator; or


(b) the company ' s creditors resolve under paragraph 439C(b) that the administration should end; or


(c) the company ' s creditors resolve under paragraph 439C(c) that the company be wound up.

435C(3)  
However, the administration of a company may also end because:


(a) the Court orders, under section 447A or otherwise, that the administration is to end, for example, because the Court is satisfied that the company is solvent; or


(b) the convening period, as fixed by subsection 439A(5) , for a meeting of the company ' s creditors ends:


(i) without the meeting being convened in accordance with section 439A ; and

(ii) without an application being made for the Court to extend under subsection 439A(6) the convening period for the meeting; or


(c) an application for the Court to extend under subsection 439A(6) the convening period for such a meeting is finally determined or otherwise disposed of otherwise than by the Court extending the convening period; or


(d) the convening period, as extended under subsection 439A(6) , for such a meeting ends without the meeting being convened in accordance with section 439A ; or


(e) such a meeting convened under section 439A ends (whether or not it was earlier adjourned) without a resolution under section 439C being passed at the meeting; or


(f) the company contravenes subsection 444B(2) by failing to execute a proposed deed of company arrangement; or


(g) the Court appoints a provisional liquidator of the company, or orders that the company be wound up; or


(h) if the company is a general insurer (within the meaning of the Insurance Act 1973 ) - management of the general insurer vests in a judicial manager of the company appointed by the Federal Court under Part VB of the Insurance Act 1973 ; or


(i) if the company is a life company (within the meaning of the Life Insurance Act 1995 ) - management of the life company vests in a judicial manager of the life company appointed by the Federal Court under Part 8 of the Life Insurance Act 1995 .

435C(4)  
During the administration of a company, the company is taken to be under administration.


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