One size does not fit all: varying the scope of the Part 5.3A moratorium on proceedings against companies in voluntary administration

Excerpt: Part 5.3A of the Corporations Act 2001 (Cth) (the Act), titled ‘Administration of a company’s affairs with a view to executing a deed of company arrangement’, codifies an extensive regime of rules and protocols which govern the conduct of companies in administration.

The provisions of that Part which commonly become the subject of court intervention relate to the convening of meetings and administrators’ reports to creditors, administrators’ liability and the execution and effect of deeds of company arrangement.

While the regime in Part 5.3A applies to all companies in administration, there is a recognition that it is not a case of ‘one-size-fits-all’ and that, in appropriate circumstances, the operation of the Part can be modified to suit specific circumstances or in varying ways.

Section 447A of the Act empowers the Court to make ‘such order as it thinks appropriate’ about how Part 5.3A of the Act is to operate in relation to a particular company.

This article discusses a recent application brought by an administrator for orders under s 447A to highlight the flexibility which can be achieved by invoking this provision.

Click here or on the image below to download the full article in PDF.  Originally published in the July 2016 Edition of the Australian Restructuring Insolvency & Turnaround Association (ARITA) Journal and has been republished with ARITA’s permission. 

One size does not fit all

Contributors

Joel Cook Senior Associate