New South Wales Consolidated Acts

LOAN FUND COMPANIES ACT 1976 - SECT 64

64 Right of appeal against direction under section 59 and against appointment of administrator

(1) Where:

(a) notice of a direction has been served on a loan fund company in accordance with section 59 (1), or

(b) a copy of an instrument appointing an administrator of a loan fund company has been served on the company in accordance with section 60 (2),

the company where paragraph (a) applies, or a majority of the directors who have ceased to hold office where paragraph (b) applies, may, not later than 28 days after the date on which the notice or copy of the instrument of appointment was served on the company, or within such extended period as the Court may allow, appeal to the Court against the direction or appointment, as the case may be.

(2) Any such appeal shall be made in accordance with rules made under the Supreme Court Act 1970 with the Supervisor joined as a party.

(3) On the hearing of the appeal, the Court may:

(a) in the case of an appeal against a direction under section 59 (1), make an order confirming the direction if it is satisfied that the direction is in the interests of persons who may become members of, or who may be granted options to acquire loan entitlement shares in, or who may deposit with or otherwise lend money to, the loan fund company, or

(b) in the case of an appeal against an appointment of an administrator under section 60 (1), make an order confirming the appointment of the administrator if it is satisfied that the appointment is in the interests of any of the members or creditors of, or holders of options to acquire loan entitlement shares in, the loan fund company,

but if it is not so satisfied, it may make an order revoking the direction or appointment.

(4) An order under subsection (3) revoking the appointment of an administrator of a loan fund company does not take effect until the directors have resumed the management and control of the company in accordance with directions given under subsection (6).

(5) Where the Court makes an order under subsection (3), it may make such other ancillary order or orders as it considers appropriate having regard to the circumstances of the case.

(6) Where the Court makes an order under subsection (3) revoking the appointment of an administrator of a loan fund company, it may give such directions as it considers necessary for the resumption of the management and control of the company by the persons who, immediately before the appointment of the administrator, were directors of the company.

(7) An order made under subsection (3) revoking a direction under section 59 (1), or the appointment of an administrator under section 60 (1), does not affect the validity or effect of the direction or appointment or, in the case of the appointment of an administrator, any thing done or omitted by the administrator in the exercise or performance of the administrator’s powers, authorities, duties or functions as such before the order takes effect.