Disclaimer Of Property By A Liquidator

Section 568 of the Corporations Act 2001 (Cth) (Act) allows a liquidator to disclaim certain property owned by a company to which the liquidator is appointed. The disclaimer has the effect of extinguishing the company's interest in the property but does not otherwise affect any interests attaching to the property.

Reasons for disclaimer

Section 568 allows a liquidator to disclaim the following property:

1. land burdened with onerous covenants;
2. shares;
3. property that is unsaleable or is not readily saleable; or
4. property that may give rise to a liability to pay money or some other onerous obligation;
5. property where it is reasonable to expect that the costs, charges and expenses that would be incurred in realising the property would exceed the proceeds of realising the property;