Companies Act 2014 section 558ZL

Power of relevant court to revoke rescue plan where fraud

Section 558ZL provides a mechanism for revoking a rescue plan for a small or micro company where that plan was obtained through fraud, including the time limit for bringing such an application and the steps to be taken after revocation.

• An eligible company or any interested party may apply to court within 180 days of the rescue plan taking effect to have it revoked on the grounds of fraud
• The court may revoke the plan if satisfied it was procured by fraud, on whatever terms and conditions it considers appropriate
• The court must have particular regard to protecting the rights of parties who acquired interests or property in good faith and for value in reliance on the plan
• Following revocation, a certified copy of the court order must be delivered as soon as practicable to the Registrar and the Director, by a person directed by the court