Commonwealth Numbered Acts

CORPORATE LAW REFORM ACT 1992 No. 210 of 1992 - SECT 55

55. After section 434 of the Corporations Law the following sections are
inserted in Part 5.2: Court may remove controller for misconduct

"434A. Where, on the application of a corporation, the Court is satisfied that
a controller of property of the corporation has been guilty of misconduct in
connection with performing or exercising any of the controller's functions and
powers, the Court may order that, on and after a specified day, the controller
cease to act as receiver or give up possession or control, as the case
requires, of property of the corporation. Court may remove redundant
controller

"434B.(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 holder of the charge 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 holder of the charge
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 charge;

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

   (c)  appointing a person so to enter into possession or take control
        (whether as agent for the chargee or for the corporation). Effect of
        sections 434A and 434B

"434C.(1) Except as expressly provided in section 434A or 434B, an order under
that section does not affect a charge on property of a corporation.

"(2) Nothing in section 434A or 434B limits any other power of the Court to
remove, or otherwise deal with, a controller of property of a corporation (for
example, the Court's powers under section 423).".