Section 578 — Corporations Act 2001 (Cth)

Pooling determination

(1) If:

(a) a pooling determination is made in relation to a group of 2 or more companies; and

(b) meetings are convened under subsection 577(1A) of the eligible unsecured creditors of each company in the group; and

(c) at each meeting, the eligible unsecured creditors pass a resolution, as referred to in section 577, approving the making of the determination;

then:

(d) if all the resolutions were passed at the same time—the determination comes into force immediately after the resolutions were passed; or

(e) if the resolutions were passed at different times—the determination comes into force immediately after the last of those times.

Note: For eligible unsecured creditor, see section 579Q.

Variation of pooling determination

(2) If:

(a) a pooling determination is in force in relation to a group of 2 or more companies; and

(b) the pooling determination is varied; and

(c) meetings are convened under subsection 577(1A) of the eligible unsecured creditors of each company in the group; and

(d) at each meeting, the eligible unsecured creditors pass a resolution, as referred to in section 577, approving the making of the variation;

then:

(e) if all the resolutions were passed at the same time—the variation comes into force immediately after the resolutions were passed; or

(f) if the resolutions were passed at different times—the variation comes into force immediately after the last of those times.

Note: For eligible unsecured creditor, see section 579Q.

Related sections

• s 572 — Variation of pooling determination
• s 573 — Lodgment of copy of pooling determination etc.
• s 577 — Eligible unsecured creditors may decide to approve the determination or variation
• s 579 — Duties of liquidator
• s 579A — Court may vary or terminate pooling determination
• s 579B — Court may cancel or confirm variation

Research how courts apply s 578

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