THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

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

Division 7 - Person managing a corporation while disqualified may become liable for corporation's debts

SECTION 588Z   COURT MAY MAKE ORDER IMPOSING LIABILITY  

588Z    Where:

(a)  a company is being wound up; and

(b)  at or after the commencement of this Part and within 4 years before the relation-back day, a person contravened:

(i) section 206A; or

(ii) a previous law corresponding to a section referred to in subparagraph (i);

by managing the company;

the Court may, on the application of the company's liquidator, order that the person is personally liable for so much of the company's debts and liabilities as does not exceed an amount specified in the order.