Commonwealth Numbered Acts

COMPANIES (INSOLVENCY ASSISTANCE) AMENDMENT ACT 1991 No. 34 of 1991 - SECT 3

3. Section 315 of the Principal Act is amended:

   (a)  by inserting after subsection (1) the following subsections:

"(1A) Where:

   (a)  a compromise or arrangement is proposed between 30 or more
        corporations that are wholly-owned subsidiaries of a holding company
        and the creditors or a class of the creditors of each of those
        subsidiaries and between the holding company and the creditors or a
        class of the creditors of the holding company; and

   (b)  the proposed compromise or arrangement in relation to each subsidiary
        includes a term that orders will be sought under section 317
        transferring the whole of the undertaking and of the property and
        liabilities of the subsidiary to the holding company; and

   (c)  the Court is satisfied, on the application in a summary way of the
        holding company or of a creditor of the holding company or, if the
        holding company is being wound up, of the liquidator, that the number
        of meetings that would be required between creditors in order to
        consider the proposed compromises or arrangements would be so great as
        to result in a significant impediment to the timely and effective
        consideration by those creditors of the terms of the compromises or
        arrangements; the Court may order a meeting or meetings, on a
        consolidated basis, of the creditors of the holding company and of
        each of the subsidiaries or of such class or classes of those
        creditors as the Court determines and, where the Court makes such an
        order, the Court may approve the explanatory statement required by
        paragraph 316 (1) (a) to accompany notices of the meeting or meetings.

"(1B) Where:

   (a)  there are fewer than 30 wholly-owned subsidiaries of the holding
        company but the matters referred to in paragraphs (1A) (b) and (c) are
        satisfied; and

   (b)  the Court considers that circumstances exist that would justify its
        doing so; the Court may make an order under subsection (1A) in
        relation to the proposed compromise or arrangement.

"(1C) Where an order is made under subsection (1A) in relation to a proposed
compromise or arrangement, the succeeding provisions of this Part apply to the
compromise or arrangement as if:

   (a)  references in this Part to a company included references to all of the
        corporations to which the order relates; and

   (b)  references in this Part to creditors of a company included references
        to the creditors of all of the corporations to which the order
        relates; and

   (c)  references in this Part to a class of the creditors of a company were
        references to the relevant class of creditors of all of the
        corporations to which the order relates.";
(b) by inserting in subsections (2), (3), (4) and (19) "or (1A)" after
"subsection (1)";
(c) by inserting in subsection (15) "or (1A)" after "subsection (1)" (first
occurring);
(d) by inserting in subsection (15) "or (1A), as the case may be" after
"subsection (1)" (last occurring).