A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY  

Division 4 - Director liable to compensate company  

Subdivision B - Proceedings by creditor  

SECTION 588T  WHEN CREDITOR MAY SUE FOR COMPENSATION WITHOUT LIQUIDATOR'S CONSENT  

588T(1)  [Notice given to liquidator]  


This section applies where a notice is given under section 588S.

588T(2)  [Liquidator withholds consent]  


The creditor may begin proceedings in a court under section 588M in relation to the incurring by the company of the debt specified in the notice if:


(a) as at the end of 3 months after the liquidator receives the notice, he or she has not consented to the creditor beginning such proceedings; and


(b) on an application made after those 3 months, the court has given leave for the proceedings to begin.

588T(3)  [Liquidator supplies reasons]  


If:


(a) during those 3 months, the liquidator gives to the creditor a written statement of the reasons why the liquidator thinks that such proceedings should not be begun; and


(b) the creditor applies for leave under paragraph (2)(b);

then:


(c) the creditor must file the statement with the court when so applying; and


(d) in determining the application, the court is to have regard to the reasons set out in the statement.

 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page