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Self-executing provisions

             (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.

             (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.

             (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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