Commonwealth Numbered Acts

CORPORATE LAW REFORM ACT 1992 No. 210 of 1992 - SECT 109

109. After section 568 of the Corporations Law the following sections and
heading are inserted: Liquidator must give notice of disclaimer

"568A.(1) As soon as practicable after disclaiming property, a liquidator
must:

   (a)  lodge a written notice of the disclaimer; and

   (b)  give written notice of the disclaimer to each person who appears to
        the liquidator to have, or to claim to have, an interest in the
        property; and

   (c)  if the liquidator has reason to suspect that some person or persons
        may have, or may claim to have, an interest or interests in the
        property, but either does not know who, or does not know where, the
        person is or the persons are - comply with subsection (2); and

   (d)  if a law of the Commonwealth or of a State or Territory requires the
        transfer or transmission of the property to be registered - give
        written notice of the disclaimer to the registrar or other person who
        has the function under that law of registering the transfer or
        transmission of the property.

"(2) If paragraph (1)(c) applies, the liquidator must cause notice of the
disclaimer to be published:

   (a)  if the property is situated in a jurisdiction and a daily newspaper
        circulates generally in that jurisdiction - in a daily newspaper that
        so circulates; and

   (b)  in each jurisdiction in which:

        (i)    the company has carried on business during or after the period
               of 6 months ending when the winding up began; and

        (ii)   a daily newspaper circulates generally; in a daily newspaper
               that circulates generally in that jurisdiction; whether on the
               same or different days. Application to set aside disclaimer
               before it takes effect

"568B.(1) A person who has, or claims to have, an interest in disclaimed
property may apply to the Court for an order setting aside the disclaimer
before it takes effect, but may only do so within 14 days after:

   (a)  if the liquidator gives to the person notice of the disclaimer,
        because of paragraph 568A(1)(b), before the end of 14 days after the
        liquidator lodges such notice - the liquidator gives such notice to
        the person; or

   (b)  if paragraph (a) does not apply but notice of the disclaimer is
        published under subsection 568A(2) before the end of the 14 days
        referred to in that paragraph - the last such notice to be so
        published is so published; or

   (c)  otherwise - the liquidator lodges notice of the disclaimer.

"(2) On an application under subsection (1), the Court:

   (a)  may by order set aside the disclaimer; and

   (b)  if it does so - may make such further orders as it thinks appropriate.

"(3) However, the Court may set aside a disclaimer under this section only if
satisfied that the disclaimer would cause, to persons who have, or claim to
have, interests in the property, prejudice that is grossly out of proportion
to the prejudice that setting aside the disclaimer would cause to the
company's creditors. When disclaimer takes effect

"568C.(1) A disclaimer takes effect if, and only if:

   (a)  in a case where only one application under section 568B for an order
        setting aside the disclaimer, or each of 2 or more such applications,
        is made within the period that that section prescribes for making the
        application - the application, or each of the applications, is
        unsuccessful; or

   (b)  no such application is so made.

"(2) For the purposes of subsection (1), an application under section 568B is
successful if, and only if, the result of the application, and all appeals (if
any) arising out of the application, being finally determined or otherwise
disposed of is an order setting aside the disclaimer (whether or not further
orders are also made).

"(3) A disclaimer that takes effect because of subsection (1) is taken to have
taken effect on the day after:

   (a)  if:

        (i)    the liquidator gave to a person notice of the disclaimer
               because of paragraph 568A(1)(b); or

        (ii)   notice of the disclaimer was published under subsection
               568A(2); before the end of 14 days after the liquidator lodged
               notice of the disclaimer - the last day when the liquidator so
               gave such notice or such notice was so published; or

   (b)  otherwise - the day when the liquidator lodged notice of the
        disclaimer. Effect of disclaimer

"568D.(1) A disclaimer is taken to have terminated, as from the day on which
it is taken because of subsection 568C(3) to take effect, the company's
rights, interests, liabilities and property in or in respect of the disclaimer
property, but does not affect any other person's rights or liabilities except
so far as necessary in order to release the company and its property from
liability.

"(2) A person aggrieved by the operation of a disclaimer is taken to be a
creditor of the company to the extent of any loss suffered by the person
because of the disclaimer and may prove such a loss as a debt in the winding
up. Application to set aside disclaimer after it has taken effect

"568E.(1) With the leave of the Court, a person who has, or claims to have, an
interest in disclaimed property may apply to the Court for an order setting
aside the disclaimer after it has taken effect.

"(2) The Court may give leave only if it is satisfied that it is unreasonable
in all the circumstances to expect the person to have applied for an order
setting aside the disclaimer before it took effect.

"(3) The Court may give leave subject to conditions.

"(4) On an application under subsection (1), the Court:

   (a)  may by order set aside the disclaimer; and

   (b)  if it does so - may make such further orders as it thinks appropriate,
        including orders necessary to put the company, the liquidator or
        anyone else in the same positon, as nearly as practicable, as if the
        disclaimer had never taken effect.

"(5) However, the Court may set aside a disclaimer only if satisfied that the
disclaimer has caused, or would cause, to persons who have, or claim to have,
interests in the property, prejudice that is grossly out of proportion to the
prejudice that setting aside the disclaimer (and making any further orders)
would cause to:

   (a)  the company's creditors; and

   (b)  persons who have changed their position in reliance on the disclaimer
        taking effect. Court may dispose of disclaimed property

"568F.(1) The Court may order that disclaimed property vest in, or be
delivered to:

   (a)  a person entitled to the property; or

   (b)  a person in or to whom it seems to the Court appropriate that the
        property be vested or delivered; or

   (c)  a person as trustee for a person of a kind referred to in paragraph
        (a) or (b).

"(2) The Court may make an order under subsection (1):

   (a)  on the application of a person who claims an interest in the property,
        or is under a liability in respect of the property that this Law has
        not discharged; and

   (b)  after hearing such persons as it thinks appropriate.

"(3) Subject to subsection (4), where an order is made under subsection (1)
vesting property, the property vests immediately, for the purposes of the
order, without any conveyance, transfer or assignment.

"(4) Where:

   (a)  a law of the Commonwealth or of a State or Territory requires the
        transfer of property vested by an order under subsection (1) to be
        registered; and

   (b)  that law enables the order to be registered; the property vests in
        equity because of the order but does not vest at law until that law
        has been complied with.

"Division 7B - Effect on enforcement process
against company's property".