Section 434LA — Corporations Act 2001 (Cth)

(1) The object of subsection (2) is to ensure that a self‑executing provision:

(a) cannot start to apply against a corporation for certain reasons; and

(b) can be the subject of a Court order providing that the provision can only start to apply against a corporation with the leave of the Court, and in accordance with such terms (if any) as the Court imposes.

(2) Sections 434J to 434L also apply in relation to a self‑executing provision in a corresponding way to the way they apply in relation to a right. For this purpose, assume those sections apply with such modifications as are necessary, including any prescribed by the regulations for the purposes of this subsection.

Note 1: This subsection achieves the object in subsection (1) by extending the application of all of the outcomes, exceptions and powers in sections 434J to 434L.

Note 2: These modifications include, for example, treating:

(a) a reference that a right cannot be enforced (however described) as including a reference that a self‑executing provision cannot start to apply; and

(b) the words “if the right arises for that reason by express provision (however described) of a contract, agreement or arrangement” as being omitted from subsection 434J(1); and

(c) a reference that one or more rights are enforceable as including a reference that one or more self‑executing provisions can start to apply; and

(d) paragraph 434L(2)(b) as alternatively providing that the Court is satisfied that one or more reasons referred to in paragraphs 434J(1)(a) to (d) can cause the self‑executing provisions to start to apply.

(3) In this section:

self‑executing provision means a provision of a contract, agreement or arrangement that can start to apply automatically:

(a) for one or more reasons; and

(b) without any party to the contract, agreement or arrangement making a decision that the provision should start to apply.

Related sections

• s 434J — Stay on enforcing rights merely because of the appointment of a managing controller of a corporation’s property etc.
• s 434K — Lifting the stay
• s 434L — Order for rights to be enforceable only with leave of the Court
• s 434M — When other laws prevail—certain other Commonwealth Acts
• s 435A — Object of Part
• s 435B — Meaning of property and receiver

Research how courts apply s 434LA

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