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 5 - Liability of holding company for insolvent trading by subsidiary  

SECTION 588WA  SAFE HARBOUR - TAKING REASONABLE STEPS TO ENSURE COMPANY'S DIRECTORS HAVE THE BENEFIT OF THE DIRECTORS' SAFE HARBOUR  

 View history reference

588WA(1)  

Subsection 588V(1) does not apply in relation to a corporation that is the holding company of a company, and to a debt, if:


(a) the corporation takes reasonable steps to ensure that subsection 588GA(1) (about a safe harbour for directors taking certain courses of action) applies in relation to:


(i) each of the directors of the company; and

(ii) the debt; and


(b) subsection 588GA(1) does so apply in relation to each of those directors and to the debt.

588WA(2)  

A corporation that wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588V(1) bears an evidential burden in relation to that matter.

588WA(3)  

In this section:

evidential burden , in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.


 



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