Australian Securities and Investments Commission Class Order [CO 98/59] (Cth)

ASIC Class Order [CO 98/59]

Transitional relief for one party prescribed interest schemes

This instrument has effect under paragraph 601QA(1)(b) of the Corporations Act 2001.

This compilation was prepared on 25 May 2005 taking into account amendments up to [CO 00/1067].

Prepared by the Australian Securities and Investments Commission.

Australian Securities and Investments Commission

Corporations Law — Paragraph 601QA(1)(b) — Declaration

Pursuant to paragraph 601QA(1)(b) of the Corporations Law (“Law”) the Australian Securities and Investments Commission hereby declares that Division 11 (second appearing) of Part 11.2 of the Law applies to the persons specified in Schedule A as if:

1.     sections 1455, 1456, 1457 and 1458 were modified or varied by being replaced by the following:

“1455 Power to Convene a Meeting

(1)   If the management company or trustee or representative in relation to the prescribed interests decides not to lodge a registration application in relation to the undertaking naming itself as the proposed responsible entity, it may convene a meeting of the holders of the prescribed interests to:

(a)        choose a proposed responsible entity for the purpose of making a registration application; or

(b)        decide that the undertaking is to be wound up.

(1A) A resolution passed under paragraph (1)(a) may direct the proposed responsible entity to lodge with the registration application a compliance plan that provides for scheme property to be held by a person other than the responsible entity, or a person that is not related to the responsible entity, as the responsible entity's agent.

(2)   If a proposed responsible entity is chosen under paragraph (1)(a), it does not affect the management company or trustee or representative continuing in office until registration.

(3)   If a meeting is convened under subsection (1), the management company or trustee or representative must lodge with ASIC a notice that the meeting has been convened and a notice setting out the outcome of the meeting.

(4)   If at a meeting convened under subsection (1), the holders of prescribed interests neither choose a responsible entity nor decide that the undertaking is to be wound up, the management company or trustee or representative may apply to the Court for an order directing it to wind up the scheme.

(5)   The management company or trustee or representative must ensure that the undertaking is wound up in accordance with any deed or other agreement in relation to the prescribed interests and any orders under subsection 1459(2) if

(a)        the holders of prescribed interests decide at a meeting convened for the purpose of subsection (1), that the undertaking it to be wound up, or

(b)        the Court makes an order directing the management company to wind up the undertaking pursuant to an application under subsection (4).”

2.     Subsections 1459(1) and (2) were modified or varied by adding “or agreement” after “deed”.

3.     Subsection 1460(1) was modified or varied by being replaced by the following:

“(1)  This section set out the powers of:

(a)        the management company or trustee or representative if that body decides to lodge a registration application in relation to the undertaking naming itself as the proposed responsible entity and paragraph (b) does not apply; or

(b)        a body chosen by the holders of the prescribed interests as the proposed responsible entity at a meeting convened under subsection 1455(1).

4.     Section 1461 were modified or varied by replacing, “paragraph 1456(2)(b), 1457(1)(a)” with “subsection 1455(1) and paragraph”.

SCHEDULE A — TO WHOM THIS EXEMPTION APPLIES

Any management company or trustee or representative of an undertaking (other than a common fund) to which section 1452 of the Law applies and in relation to which there is no separate entity that is the trustee or representative or the management company as the case may be because of an exemption under subsection 1084(2) of the Law or a declaration made under subsection 1084(6) of the Law.

Notes to ASIC Class Order [CO 98/59]

Note 1

ASIC Class Order [CO 98/59] (in force under paragraph 601QA(1)(b) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the Tables below.

Table of Instruments

Instrument number	Date of making or FRLI registration	Date of commencement	Application, saving or transitional provisions
[CO 98/59]	13/7/1998	13/7/1998	-
[CO 99/1010]	8/7/1999	8/7/1999	-
[CO 00/1067]	25/5/2000	25/5/2000	-

Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted

Provision affected	How affected
First para	am. [CO 99/1010]
Schedule A	am. [CO 00/1067]