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CORPORATIONS ACT 2001 - SECT 579A

Court may vary or terminate pooling determination

             (1)  If a pooling determination is in force in relation to a group of 2 or more companies, the Court may make an order varying or terminating the pooling determination if the Court is satisfied that:

                     (a)  information that was about the business, property, affairs or financial circumstances of a company in the group, and that:

                              (i)  was false or misleading; and

                             (ii)  can reasonably be expected to have been material to eligible unsecured creditors of a company in the group in deciding whether to vote in favour of a resolution to approve the making of the pooling determination;

                            was given to:

                            (iii)  the liquidator of a company in the group; or

                            (iv)  eligible unsecured creditors of a company in the group; or

                     (b)  information that was about the business, property, affairs or financial circumstances of a company in the group, and that:

                              (i)  was false or misleading; and

                             (ii)  can reasonably be expected to have been material to eligible unsecured creditors of a company in the group in deciding whether to vote in favour of a resolution to approve the making of the pooling determination;

                            was contained in a document that accompanied a notice of the meeting at which the resolution was passed; or

                     (c)  there was an omission from such a document, and the omission can reasonably be expected to have been material to any of those eligible unsecured creditors in deciding whether to vote in favour of a resolution to approve the making of the pooling determination; or

                     (d)  effect cannot be given to the pooling determination without injustice or undue delay; or

                     (e)  the pooling determination would materially disadvantage an eligible unsecured creditor who is an applicant for the order; or

                      (f)  the pooling determination would be oppressive or unfairly prejudicial to, or unfairly discriminatory against, an applicant for the order who is an eligible unsecured creditor of a company in the group; or

                     (g)  the pooling determination would be contrary to the interests of the creditors of the companies in the group, considered as a whole; or

                     (h)  in a case where a company in the group is being wound up under a members' voluntary winding up:

                              (i)  the pooling determination would materially disadvantage a member of the company who is an applicant for the order; or

                             (ii)  the pooling determination would be oppressive or unfairly prejudicial to, or unfairly discriminatory against, one or more such members; or

                            (iii)  the pooling determination would be contrary to the interests of the members of the company as a whole; or

                      (i)  the pooling determination should be varied or terminated for some other reason.

Note:          For eligible unsecured creditor , see section 579Q.

             (2)  An order may only be made on the application of:

                     (a)  a creditor of a company in the group; or

                     (b)  in a case where a company in the group is being wound up under a members' voluntary winding up--a member of the company, so long as the member is not a company in the group; or

                     (c)  any other interested person.

             (3)  If the Court makes an order under subsection (1), the applicant for the order must:

                     (a)  lodge with ASIC a notice setting out the text of the order; and

                     (b)  do so within 2 business days after the making of the order.

The notice must be in the prescribed form.



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