Section 1233L — Corporations Act 2001 (Cth)

(1) The liabilities of a sub‑fund of a CCIV at a particular time are the following:

(a) liabilities of the CCIV that relate solely to the business of the sub‑fund;

(b) liabilities of the CCIV not covered by paragraph (a), to the extent that it is fair and reasonable in the circumstances to allocate the liability to the sub‑fund at the time having regard to the following matters:

(i) the extent to which the liability, when it arose, related to the business of the sub‑fund;

(ii) the extent to which assets of the sub‑fund, and assets of other sub‑funds, of the CCIV have been applied to meet the liability;

(iii) the regulations (if any) made for the purposes of subsection (4).

Note: Section 1233A is about references to the liabilities of a CCIV.

Effect of an allocation determination

(2) Despite subsection (1), if:

(a) a particular proportion of a liability of a CCIV is allocated to a sub‑fund of the CCIV at a time under a determination made under section 1233M (including a determination as varied under section 1233N); and

(b) the determination is operative at the time (see subsection 1233M(4));

that proportion of the liability is taken to form part of the liabilities of the sub‑fund at that time.

Effect of a Court order about an arrangement or reconstruction

(3) Despite subsections (1) and (2), the liabilities of a sub‑fund of a CCIV:

(a) include liabilities that, in accordance with a Court order made under section 1235F (about arrangements and reconstructions of sub‑funds), are to be liabilities of the sub‑fund; and

(b) do not include liabilities that, in accordance with an order made under that section, are no longer to be liabilities of the sub‑fund.

Regulations

(4) The regulations may provide for and in relation to matters to be considered in determining the extent to which a liability of a CCIV forms part of the liabilities of a sub‑fund of the CCIV.

Related sections

• s 1233H — Meaning of assets—sub‑fund of a CCIV
• s 1233J — When an allocation determination is required
• s 1233K — When property must be converted into money etc.
• s 1233M — When an allocation determination is required
• s 1233N — Variations of proportional allocation of liabilities
• s 1233P — Creditor may require corporate director to provide information about allocation

Research how courts apply s 1233L

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