Index to Schedule 2—Insolvency Practice Schedule (Corporations)

 Corporate Insolvency, External administrators, Insolvency Law, Regulation
Apr 282017
 

Issues impacted upon by this new legislation

Schedule 2 is now part of the Corporations Act 2001. The Act is available for viewing/download from www.legislation.gov.au. Schedule 2 is in Volume 6, and follows section 1637 of the Act. To see Schedule 2 only, go to this page at austlii.ed.au


Schedule 2—Insolvency Practice Schedule (Corporations) Page
Part 1—Introduction 241
Division 1—Introduction 241
1‑1 Object of this Schedule 241
1‑5 Simplified outline of this Schedule 241
Division 5—Definitions 243
Subdivision A—Introduction 243
5‑1 Simplified outline of this Division 243
Subdivision B—The Dictionary 243
5‑5 The Dictionary 243
Subdivision C—Other definitions 246
5‑10 Meaning of current conditions 246
5‑15 Meaning of external administration of a company 247
5‑20 Meaning of external administrator of a company 247
5‑25 References to the external administrator of a company 248
5‑26 Property of a company 248
5‑27 Meaning of pooled group 248
5‑30 Persons with a financial interest in the external administration of a company 249
Part 2—Registering and disciplining practitioners 250
Division 10—Introduction 250
10‑1 Simplified outline of this Part 250
10‑5 Working cooperatively with the Inspector‑General in Bankruptcy 251
Division 15—Register of liquidators 252
15‑1 Register of Liquidators 252
Division 20—Registering liquidators 253
Subdivision A—Introduction 253
20‑1 Simplified outline of this Division 253
Subdivision B—Registration 253
20‑5 Application for registration 253
20‑10 ASIC may convene a committee to consider 254
20‑15 ASIC must refer applications to a committee 254
20‑20 Committee to consider applications 254
20‑25 Committee to report 256
20‑30 Registration 256
20‑35 Conditions imposed on all registered liquidators or a class of registered liquidators 257
Subdivision C—Varying etc. conditions of registration 258
20‑40 Application to vary etc. conditions of registration 258
20‑45 ASIC may convene a committee to consider applications 258
20‑50 ASIC must refer applications to a committee 259
20‑55 Committee to consider applications 259
20‑60 Committee to report 259
20‑65 Committee’s decision given effect 259
Subdivision D—Renewal 260
20‑70 Application for renewal 260
20‑75 Renewal 260
Subdivision E—Offences relating to registration 261
20‑80 False representation that a person is a registered liquidator 261
Division 25—Insurance 262
25‑1 Registered liquidators to maintain insurance 262
Division 30—Annual liquidator returns 263
30‑1 Annual liquidator returns 263
Division 35—Notice requirements 265
35‑1 Notice of significant events 265
35‑5 Notice of other events 266
Division 40—Disciplinary and other action 267
Subdivision A—Introduction 267
40‑1 Simplified outline of this Division 267
Subdivision B—Direction to comply 268
40‑5 Registered liquidator to remedy failure to lodge documents or give information or documents 268
40‑10 Registered liquidator to correct inaccuracies etc. 269
40‑15 Direction not to accept further appointments 271
Subdivision C—Automatic cancellation 272
40‑20 Automatic cancellation 272
Subdivision D—ASIC may suspend or cancel registration 272
40‑25 ASIC may suspend registration 272
40‑30 ASIC may cancel registration 273
40‑35 Notice of suspension or cancellation 274
Subdivision E—Disciplinary action by committee 275
40‑40 ASIC may give a show‑cause notice 275
40‑45 ASIC may convene a committee 276
40‑50 ASIC may refer matters to the committee 277
40‑55 Decision of the committee 277
40‑60 Committee to report 279
40‑65 ASIC must give effect to the committee’s decision 279
Subdivision F—Lifting or shortening suspension 279
40‑70 Application to lift or shorten suspension 279
40‑75 ASIC may convene a committee to consider applications 280
40‑80 ASIC must refer applications to a committee 280
40‑85 Committee to consider applications 280
40‑90 Committee to report 281
40‑95 Committee’s decision given effect 281
Subdivision G—Action initiated by industry body 281
40‑100 Notice by industry bodies of possible grounds for disciplinary action 281
40‑105 No liability for notice given in good faith etc. 283
40‑110 Meaning of industry bodies 283
Subdivision H—Consequences of certain disciplinary and other action 284
40‑111 Appointment of another liquidator if liquidator’s registration is suspended or cancelled 284
Division 45—Court oversight of registered liquidators 286
45‑1 Court may make orders in relation to registered liquidators 286
45‑5 Court may make orders about costs 287
Division 50—Committees under this Part 288
50‑1 Simplified outline of this Division 288
50‑5 Prescribed body appointing a person to a committee 288
50‑10 Minister appointing a person to a committee 289
50‑15 Single committee may consider more than one matter 290
50‑20 Ongoing consideration of matters by committee 291
50‑25 Procedure and other rules relating to committees 291
50‑30 Remuneration of committee members 291
50‑35 Committee must only use information etc. for purposes for which disclosed 292
Part 3—General rules relating to external administrations 294
Division 55—Introduction 294
55‑1 Simplified outline of this Part 294
Division 60—Remuneration and other benefits received by external administrators 296
Subdivision A—Introduction 296
60‑1 Simplified outline of this Division 296
Subdivision B—Remuneration of external administrators—general rules 297
60‑2 Application of this Subdivision 297
60‑5 External administrator’s remuneration 297
60‑10 Remuneration determinations 298
60‑11 Review of remuneration determinations 299
60‑12 Matters to which the Court must have regard 300
60‑15 Maximum default amount 301
Subdivision C—Remuneration of provisional liquidators 303
60‑16 Remuneration of provisional liquidators 303
Subdivision D—Remuneration of liquidators in winding up by ASIC 303
60‑17 Remuneration of liquidators in winding up by ASIC 303
Subdivision E—Duties of external administrators relating to remuneration and benefits etc. 304
60‑20 External administrator must not derive profit or advantage from the administration of the company 304
Division 65—Funds handling 307
65‑1 Simplified outline of this Division 307
65‑5 External administrator must pay all money into an administration account 307
65‑10 Administration accounts 308
65‑15 External administrator must not pay other money into the administration account 309
65‑20 Consequences for failure to pay money into administration account 309
65‑25 Paying money out of administration account 310
65‑40 Handling securities 311
65‑45 Handling of money and securities—Court directions 312
65‑50 Rules in relation to consequences for failure to comply with this Division 313
Division 70—Information 314
Subdivision A—Introduction 314
70‑1 Simplified outline of this Division 314
Subdivision B—Administration returns 315
70‑5 Annual administration return 315
70‑6 End of administration return 316
Subdivision C—Record‑keeping 318
70‑10 Administration books 318
70‑15 Audit of administration books—ASIC 319
70‑20 Audit of administration books—on order of the Court 320
70‑25 External administrator to comply with auditor requirements 320
70‑30 Transfer of books to new administrator 321
70‑31 Transfer of books to ASIC etc. 323
70‑35 Retention and destruction of books 325
70‑36 Books of company in external administration—evidence 326
Subdivision D—Giving information etc. to creditors and others 327
70‑40 Right of creditors to request information etc. from external administrator 327
70‑45 Right of individual creditor to request information etc. from external administrator 327
70‑46 Right of members to request information etc. from external administrator in a members’ voluntary winding up 328
70‑47 Right of individual member to request information etc. from external administrator in a members’ voluntary winding up 329
70‑50 Reporting to creditors and members 329
Subdivision E—Other requests for information etc. 330
70‑55 Commonwealth may request information etc. 330
Subdivision F—Reporting to ASIC 331
70‑60 Insolvency Practice Rules may provide for reporting to ASIC 331
Subdivision G—External administrator may be compelled to comply with requests for information etc. 332
70‑65 Application of this Subdivision 332
70‑70 ASIC may direct external administrator to comply with the request for relevant material 332
70‑75 ASIC must notify external administrator before giving a direction under section 70‑70 333
70‑80 ASIC must not direct external administrator to give the relevant material if external administrator entitled not to comply with the request 333
70‑85 ASIC may impose conditions on use of the relevant material 334
70‑90 Court may order relevant material to be given 334
Division 75—Meetings 336
75‑1 Simplified outline of this Division 336
75‑5 Other obligations to convene meetings not affected 336
75‑10 External administrator may convene meetings 336
75‑15 External administrator must convene meeting in certain circumstances 337
75‑20 External administrator must convene meeting if required by ASIC 338
75‑25 External administrator’s representative at meetings 338
75‑30 ASIC may attend meetings 339
75‑35 Commonwealth may attend certain meetings etc. 339
75‑40 Proposals to creditors or contributories without meeting 339
75‑41 Outcome of voting at creditors’ meeting determined by related entity—Court powers 341
75‑42 Creditors’ resolution passed because of casting vote—Court review 342
75‑43 Proposed creditors’ resolution not passed because of casting vote—Court’s powers 343
75‑44 Interim order on application under section 75‑41, 75‑42 or 75‑43 344
75‑45 Order under section 75‑41 or 75‑42 does not affect act already done pursuant to resolution 345
75‑50 Rules relating to meetings 345
Division 80—Committees of inspection 347
80‑1 Simplified outline of this Division 347
80‑5 Application of sections 80‑10 to 80‑25 348
80‑10 Committee of inspection—company not a member of a pooled group 348
80‑15 Appointment and removal of members of committee of inspection by creditors generally 348
80‑20 Appointment of committee member by large creditor 349
80‑25 Appointment of committee member by employees 350
80‑26 Committee of inspection—pooled groups 351
80‑27 External administrator must convene meeting in certain circumstances 352
80‑30 Committees of inspection—procedures etc. 354
80‑35 Functions of committee of inspection 354
80‑40 Committee of inspection may request information etc. 355
80‑45 Reporting to committee of inspection 355
80‑50 Committee of inspection may obtain specialist advice or assistance 356
80‑55 Obligations of members of committee of inspection 357
80‑60 Obligations of creditor appointing a member of committee of inspection 359
80‑65 ASIC may attend committee meetings 360
80‑70 The Court may inquire into conduct of the committee 360
Division 85—Directions by creditors 361
85‑1 Simplified outline of this Division 361
85‑5 External administrator to have regard to directions given by creditors 361
Division 90—Review of the external administration of a company 362
Subdivision A—Introduction 362
90‑1 Simplified outline of this Division 362
Subdivision B—Court powers to inquire and make orders 363
90‑5 Court may inquire on own initiative 363
90‑10 Court may inquire on application of creditors etc. 363
90‑15 Court may make orders in relation to external administration 364
90‑20 Application for Court order 366
90‑21 Meetings to ascertain wishes of creditors or contributories 367
Subdivision C—Review by another registered liquidator 368
90‑22 Application of this Subdivision 368
90‑23 Appointment of reviewing liquidator by ASIC or the Court 368
90‑24 Appointment of reviewing liquidator by creditors etc. 369
90‑25 Reviewing liquidator must consent to appointment 371
90‑26 Review 371
90‑27 Who pays for a review? 372
90‑28 Court orders in relation to review 372
90‑29 Rules about reviews 374
Subdivision D—Removal by creditors 374
90‑30 Application of this Subdivision 374
90‑35 Removal by creditors 375
Part 4—Other matters 377
Division 95—Introduction 377
95‑1 Simplified outline of this Part 377
Division 100—Other matters 378
100‑5 External administrator may assign right to sue under this Act 378
100‑6 Approved forms 378
Division 105—The Insolvency Practice Rules 380
105‑1 The Insolvency Practice Rules 380
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