CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.2 - RECEIVERS, AND OTHER CONTROLLERS, OF PROPERTY OF CORPORATIONS  

SECTION 434LA   SELF-EXECUTING PROVISIONS  

434LA(1)  
The object of subsection (2) is to ensure that a self-executing provision:


(a) cannot start to apply against a corporation for certain reasons; and


(b) can be the subject of a Court order providing that the provision can only start to apply against a corporation with the leave of the Court, and in accordance with such terms (if any) as the Court imposes.

434LA(2)  
Sections 434J to 434L also apply in relation to a self-executing provision in a corresponding way to the way they apply in relation to a right. For this purpose, assume those sections apply with such modifications as are necessary, including any prescribed by the regulations for the purposes of this subsection.

Note 1: This subsection achieves the object in subsection (1) by extending the application of all of the outcomes, exceptions and powers in sections 434J to 434L .

Note 2: These modifications include, for example, treating:

  • (a) a reference that a right cannot be enforced (however described) as including a reference that a self-executing provision cannot start to apply; and
  • (b) the words " if the right arises for that reason by express provision (however described) of a contract, agreement or arrangement " as being omitted from subsection 434J(1); and
  • (c) a reference that one or more rights are enforceable as including a reference that one or more self-executing provisions can start to apply; and
  • (d) paragraph 434L(2)(b) as alternatively providing that the Court is satisfied that one or more reasons referred to in paragraphs 434J(1)(a) to (d) can cause the self-executing provisions to start to apply.
  • 434LA(3)  
    In this section:

    self-executing provision
    means a provision of a contract, agreement or arrangement that can start to apply automatically:


    (a) for one or more reasons; and


    (b) without any party to the contract, agreement or arrangement making a decision that the provision should start to apply.


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