CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 5 - EXTERNAL ADMINISTRATION
PART 5.6 - WINDING UP GENERALLY
Division 6 - Proof and ranking of claims
Subdivision A - Admission to proof of debts and claims
History
Heading inserted by No 210 of 1992, s 92 (effective 23 June
1993).
SECTION 553C
INSOLVENT COMPANIES - MUTUAL CREDIT AND SET-OFF
553C(1)
[Company insolvent]
Subject to subsection
(2), where there have been mutual credits, mutual debts or other mutual dealings between an insolvent company that is being wound up and a person who wants to have a debt or claim admitted against the company:
(a)
an account is to be taken of what is due from the one party to the other in respect of those mutual dealings; and
(b)
the sum due from the one party is to be set off against any sum due from the other party; and
(c)
only the balance of the account is admissible to proof against the company, or is payable to the company, as the case may be.
History
S 553C(1) inserted by No 210 of 1992, s 92 (effective 23 June 1993).
[
CCH Note:
See s 1382-1383.]
553C(2)
[No set-off where knowledge that company insolvent]
A person is not entitled under this section to claim the benefit of a set-off if, at the time of giving credit to the company, or at the time of receiving credit from the company, the person had notice of the fact that the company was insolvent.
History
S 553C(2) inserted by No 210 of 1992, s 92 (effective 23 June 1993).
[
CCH Note:
See s 1382-1383.]