Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

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

Division 3 - Duties to prevent insolvent trading and creditor-defeating dispositions  

Subdivision C - Safe harbour from breach of duties  

SECTION 588GAAA   SAFE HARBOUR - TEMPORARY RELIEF IN RESPONSE TO THE CORONAVIRUS  

Safe harbour

588GAAA(1)  
Subsection 588G(2) does not apply in relation to a person and a debt incurred by a company if the debt is incurred:

(a)  in the ordinary course of the company ' s business; and

(b)  during:


(i) the 6-month period starting on the day this section commences; or

(ii) any longer period that starts on the day this section commences and that is prescribed by the regulations for the purposes of this subparagraph; and

(c)  

before any appointment during that period of an administrator, restructuring practitioner or liquidator of the company.

588GAAA(2)  
A person who wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588G(2) bears an evidential burden in relation to that matter. When the safe harbour does not apply

588GAAA(3)  
Subsection (1) is taken never to have applied in relation to a person and a debt in the circumstances prescribed by the regulations for the purposes of this subsection. Definitions

588GAAA(4)  
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.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.