ASIC's new guidance sheds light on eligible applicant authorisation process

• who can be an eligible applicant
• how to be an eligible applicant
• which matters and principles affect ASIC’s decision on whether to grant an application
• what applicants need to submit to ASIC
• where to submit an application
• how much the required fee is ($468, as of the date of the information sheet’s publication)
• how ASIC will notify applicants of its decision

Eligible applicants

Eligible applicants include those who fit the definition for such under s.9 of the Corporations Act. Specifically, the following need not apply for ASIC’s authorisation:

• a corporation’s administrators, liquidators, or provisional liquidators
• administrators of a deed of company arrangement (DOCA) executed by a corporation
• restructuring practitioners for a corporation
• restructuring practitioners for a restructuring plan made by a corporation

ASIC noted in its news release that it could also provide written authorisation for eligible applicants under ss. 596A, 596B, and 597 of the Corporations Act. In these cases, the interested individuals or entities not falling under s.9 need to apply for authorisation.

ASIC’s information sheet lists the requirements for authorisation as an eligible applicant. First, the corporation involved should be in external administration as defined by chapter 5 of the Corporations Act.

Second, the applicant should have an appropriate connection with the corporation. These may include contributories, shareholders, creditors, receivers, and managers.

Lastly, the applicant should have a proper purpose aligning with legitimate interests. Potential purposes to file an application may include:

• collecting information to assist in the corporation’s external administration
• identifying the corporation’s assets or liabilities
• safeguarding creditors’ or contributories’ interests
• getting evidence for potential lawsuits relating to the corporation’s affairs
• supporting the public interest in regulating corporate conduct