CORPORATIONS ACT 2001
| CHAPTER 5
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EXTERNAL ADMINISTRATION |
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| PART 5.7B
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RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY |
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| Division 5
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Liability of holding company for insolvent trading by subsidiary |
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SECTION 588W RECOVERY OF COMPENSATION FOR LOSS RESULTING FROM INSOLVENT TRADING |
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588W(1) [
Liquidator may recover from holding company] |
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Where:
(a) a corporation has contravened section 588V in relation to the incurring of a debt by a company; and
(b) the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency; and
(c) the debt was wholly or partly unsecured when the loss or damage was suffered; and
(d) the company is being wound up;
the company's liquidator may recover from the corporation, as a debt due to the company, an amount equal to the amount of the loss or damage.
Proceedings under this section may only be begun within 6 years after the beginning of the winding up.
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