Commonwealth Consolidated Acts

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Court may remove redundant controller

             (1)  The Court may order that, on and after a specified day, a controller of property of a corporation:

                     (a)  cease to act as receiver, or give up possession or control, as the case requires, of property of the corporation; or

                     (b)  act as receiver, or continue in possession or control, as the case requires, only of specified property of the corporation.

             (2)  However, the Court may only make an order under subsection (1) if satisfied that the objectives for which the controller was appointed, or entered into possession or took control of property of the corporation, as the case requires, have been achieved, so far as is reasonably practicable, except in relation to any property specified in the order under paragraph (1)(b).

             (3)  For the purposes of subsection (2), the Court must have regard to:

                     (a)  the corporation's interests; and

                     (b)  the interests of the secured party in relation to the security interest that the controller is enforcing; and

                     (c)  the interests of the corporation's other creditors; and

                     (d)  any other relevant matter.

             (4)  The Court may only make an order under subsection (1) on the application of a liquidator appointed for the purposes of winding up the corporation in insolvency.

             (5)  An order under subsection (1) may also prohibit the secured party from doing any or all of the following, except with the leave of the Court:

                     (a)  appointing a person as receiver of property of the corporation under a power contained in an instrument relating to the security interest;

                     (b)  entering into possession, or taking control, of such property for the purpose of enforcing the security interest;

                     (c)  appointing a person so to enter into possession or take control (whether as agent for the secured party or for the corporation).

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