Australia—pooling

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Australia—pooling
  • Introduction and definitions
  • Making of pooling determination
  • Approval by creditors
  • When determination comes into force
  • Lodgment with ASIC
  • Effect of determination
  • Variation of determination
  • Duties of liquidator(s)
  • Powers of court
  • More...

Australia—pooling

Introduction and definitions

In general, the winding up of a company must be conducted separately from that of any other company, however much their affairs may have been intertwined. This has caused complexity and difficulty in many cases, so in 2007 the Corporations Act 2001 (Cth) (CA 2001) was amended to allow for the affairs of a number of companies in liquidation to be administered jointly. The provisions are contained in CA 2001, Pt 5.6, Div 8.

In applying these provisions:

  1. a ‘pooling determination’ is a determination made by the liquidator or liquidators of a group of two or more companies

  2. a ‘pooling order’ is an order made by the court

  3. an ‘eligible unsecured creditor’ is one whose debt or claim is unsecured and who is not a company in the group: CA 2001, s 579Q. A member or members of a group whose debt or claim against another company or companies in the group is or are not extinguished because of a modification of the normal operation of a pooling determination (see below), and a creditor so determined by the court are also eligible unsecured creditors. Conversely, a creditor can be excluded as an eligible unsecured creditor by court determination

Definitions of ‘pooling determination’ and ‘pooling order’ are contained in CA 2001, s 9.

Also, in this part of the guide, reference to ‘an external member of

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