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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 568
Disclaimer by liquidator; application to Court by party to
(1) Subject to this section, a liquidator of a company may at any
time, on the company's behalf, by signed writing disclaim property of the
company that consists of:
- land burdened with onerous covenants; or
- shares; or
- property that is unsaleable or is not readily saleable; or
- property that may give rise to a liability to pay money or some other
onerous obligation; or
- property where it is reasonable to expect that the costs, charges and
expenses that would be incurred in realising the property would exceed the
proceeds of realising the property; or
- a contract;
whether or not:
- except in the case of a contractthe liquidator has tried to sell the
property, has taken possession of it or exercised an act of ownership in
relation to it; or
- in the case of a contractthe company or the liquidator has tried to
assign, or has exercised rights in relation to, the contract or any property
to which it relates.
(1AA) This section does not apply to an agreement by the company to buy back
its own shares.
(1A) A liquidator cannot disclaim a contract (other than an unprofitable
contract or a lease of land) except with the leave of the Court.
(1B) On an application for leave under subsection (1A), the Court may:
- grant leave subject to such conditions; and
- make such orders in connection with matters arising under, or relating to,
as the Court considers just and equitable.
- an application in writing has been made to the liquidator by
a person interested in property requiring the liquidator to decide whether he
or she will disclaim the property; and
- the liquidator has, for the period of 28 days after the receipt of the
application, or for such extended period as is allowed by the Court, declined
or neglected to disclaim the property;
the liquidator is not entitled to disclaim the property under this section
and, in the case of a contract, he or she is taken to have adopted it.
(9) The Court may, on the application of a person who is, as against the
company, entitled to the benefit or subject to the burden of a contract made
with the company, make an order:
- discharging the contract on such terms
as to payment by or to either party of damages for the non-performance of the
contract, or otherwise, as the Court thinks proper; or
- rescinding the contract on such terms as to restitution by or to either
party, or otherwise, as the Court thinks proper.
(10) Amounts payable pursuant to an order under subsection (9) may be
proved as a debt in the winding up.
(13) For the purpose of determining whether property of a company is of a kind
to which subsection (1) applies, the liquidator may, by notice served on
a person claiming to have an interest in the property, require the person to
give to the liquidator within such period, not being less than 14 days, as is
specified in the notice, a statement of the interest claimed by the person and
the person must comply with the requirement.
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