THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

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

Division 11 - Variation, termination and avoidance of deed

SECTION 445D   WHEN COURT MAY TERMINATE DEED  

445D(1)  [Power of Court to terminate deed]  

The Court may make an order terminating a deed of company arrangement if satisfied that:

(a)  information about the company's business, property, affairs or financial circumstances that:

(i) was false or misleading; and

(ii) can reasonably be expected to have been material to creditors of the company in deciding whether to vote in favour of the resolution that the company execute the deed;

was given to the administrator of the company or to such creditors; or

(b)  such information was contained in a report or statement under subsection 439A(4) that accompanied a notice of the meeting at which the resolution was passed; or

(c)  there was an omission from such a report or statement and the omission can reasonably be expected to have been material to such creditors in so deciding; or

(d)  there has been a material contravention of the deed by a person bound by the deed; or

(e)  effect cannot be given to the deed without injustice or undue delay; or

(f)  the deed or a provision of it is, an act or omission done or made under the deed was, or an act or omission proposed to be so done or made would be:

(i) oppressive or unfairly prejudicial to, or unfairly discriminatory against, one or more such creditors; or

(ii) contrary to the interests of the creditors of the company as a whole; or

(g)  the deed should be terminated for some other reason.

445D(2)  [Application for order]  

An order may be made on the application of:

(a)  a creditor of the company; or

(b)  the company; or

(c)  any other interested person.