A Holding DOCA — which preserves the status quo while administrators conduct a sale process without specifying property currently available for distribution — is a valid exercise of power under Part 5.3A of the Corporations Act 2001 (Cth). Administrators have two pathways when more time is needed: applying to the court for an extension of the convening period under s 439A(6), or proposing a Holding DOCA to creditors. The choice between them is a matter of professional judgment. Pre-appointment contact between prospective administrators and the board of a company (including a subsidiary with common directors to a parent company) does not of itself give rise to apprehended bias, provided the advice given is directed to the company's board and is benign in nature.
The full text is available to signed-in members, including the 7 later cases that cite this judgment.