Consent to transactions or dealings outside the ordinary course of business
5.3B.05 Consent to transactions or dealings outside the ordinary course of business
This regulation applies if the restructuring practitioner for a company under restructuring consents to a transaction or dealing under paragraph 453L(2)(b) of the Act.
The consent must be given:
in writing; or
if the restructuring practitioner is satisfied that the delay caused by giving a written consent would not be in the best interests of the company’s creditors as a whole—orally.
If the consent is given in writing, the written consent must specify any conditions imposed on the consent.
If the consent is given orally, the restructuring practitioner must, within 2 business days after the day on which the consent is given:
make a written record of the consent and any conditions imposed on the consent; and
provide a copy of the written record to the company.
The restructuring practitioner must keep a record of the consent for 5 years after the day on which the consent is given.
Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.
This Act’s bill:Explanatory statement
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