A liquidator's disclaimer of a lease agreement under s 568(1) of the Corporations Act 2001 (Cth) extinguishes the lessee's leasehold interest in the land, not merely the contractual rights and obligations. The lessor's continuing obligation to provide quiet enjoyment constitutes a 'liability' under s 568D(1), and it is necessary to extinguish the lessee's tenure to release the company from that liability. Affected lessees are relegated to proving as creditors under s 568D(2) for the loss suffered.
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