Ipso facto: Consultation commences on exclusions from stay provisions
Treasury has today announced the commencement of consultation on exposure drafts of regulations and a declaration which exclude certain contracts and certain types of contractual rights from the stay on the enforcement of ipso facto clauses provided in the Corporations Act 2001 (Cth).
As explained on the Treasury website, 'the exemptions outlined in the both the regulations and the declaration recognise that in some circumstances it is necessary or desirable for ipso facto clauses to continue to operate, for example, where there is an established market mechanism already in place or where it would be a commercial nonsense for an ipso facto clause to be stayed.'
The exposure draft regulations and declaration (and explanatory statements) can be accessed here.
ARITA will be reviewing the draft instruments with a view to making a submission.
Submissions close on 11 May 2018.