Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.5 - VOLUNTARY WINDING UP  

Division 2 - Simplified liquidation process  

Subdivision B - Simplified liquidation process  

REGULATION 5.5.04   TRANSACTIONS THAT ARE NOT VOIDABLE  

5.5.04(1)    
This regulation is made for the purposes of paragraph 500AE(3)(b) of the Act.

5.5.04(2)    
An unfair preference of a company is not voidable despite subsection 588FE(2) of the Act, provided either subregulation (3) or (4) is satisfied.

5.5.04(3)    
This subregulation is satisfied if:

(a)    the company is subject to the simplified liquidation process; and

(b)    the transaction was entered into, or an act was done for the purposes of giving effect to it, before the day that is 3 months before the relation-back day; and

(c)    no creditor under the transaction is a related entity of the company.

5.5.04(4)    
This subregulation is satisfied if:

(a)    the company is subject to the simplified liquidation process; and

(b)    the transaction was entered into, or an act was done for the purposes of giving effect to it:

(i) during the 3 months ending on the relation-back day; or

(ii) after that day but on or before the day when the winding up began; and

(c)    either:

(i) the transaction results in the creditor receiving from the company no more than $30,000 in value; or

(ii) if the transaction forms part of a series of related transactions, all of the related transactions result in the creditor receiving from the company no more than $30,000 in value; and

(d)    no creditor under the transaction is a related entity of the company.