CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

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

SECTION 434L   ORDER FOR RIGHTS TO BE ENFORCEABLE ONLY WITH LEAVE OF THE COURT  

Orders

434L(1)  
The Court may order that one or more rights under a contract, agreement or arrangement are enforceable against a corporation only:


(a) with the leave of the Court; and


(b) in accordance with such terms (if any) as the Court imposes.

Example: The order could be sought for a right to terminate for convenience.

434L(2)  
The Court may make the order if:


(a) there is a managing controller of the whole or substantially the whole of the corporation ' s property; and


(b) the Court is satisfied that:


(i) the rights are being exercised; or

(ii) the rights are likely to be exercised; or

(iii) there is a threat to exercise the rights;

because of one or more reasons referred to in paragraphs 434J(1)(a) to (d); and


(c) an application for the order is made by the managing controller.

434L(3)  
An order under subsection (1) must specify the period for which it applies. In working out the period, the Court must have regard to:


(a) subsections 434J(2) , (3) and (4) ; and


(b) the interests of justice.

434L(4)  
Subsection (1) does not apply to a right referred to in subsection 434J(5) or (7) . Interim orders

434L(5)  
Before deciding an application for an order under subsection (1), the Court may grant an interim order for one or more rights under a contract, agreement or arrangement not to be enforced against a corporation.

434L(6)  
The Court must not require an applicant for an order under subsection (1) to give an undertaking as to damages as a condition of granting an interim order.


 

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