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  

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.


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