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 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY
History
Pt 5.7B inserted by No 210 of 1992, s 111 (effective 23 June 1993).
CCH Note:
See s 1383(7).
Division 2 - Voidable transactions
History
Heading inserted by No 210 of 1992, s 111 (effective 23 June
1993).
SECTION 588FH
LIQUIDATOR MAY RECOVER FROM RELATED ENTITY BENEFIT RESULTING FROM INSOLVENT TRANSACTION
588FH(1)
[Insolvent transaction]
This section applies where a company is being wound up and a transaction of the company:
(a)
is an insolvent transaction of the company; and
(b)
is voidable under section
588FE; and
(c)
has had the effect of discharging, to the extent of a particular amount, a liability (whether under a guarantee or otherwise and whether contingent or otherwise) of a related entity of the company.
History
S 588FH(1) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588FH(2)
[Recovery proceedings by liquidator]
The company's liquidator may recover from the related entity, as a debt due to the company, an amount equal to the amount referred to in paragraph
(1)(c).
History
S 588FH(2) amended by No 104 of 1994, Sch 1 (effective 16 October 1995).
[
CCH Note:
See s 1400.]
S 588FH(2) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588FH(3)
[Sec 588FF]
In deciding what orders (if any) to make under section
588FF on an application relating to the transaction, a court must take into account any amount recovered under subsection
(2) of this section.
History
S 588FH(3) amended by No 104 of 1994, Sch 1 (effective 16 October 1995).
[
CCH Note:
See s 1400.]
S 588FH(3) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588FH(4)
[Rights of related entity]
If the liquidator recovers an amount under subsection
(2) from the related entity, the related entity has the same rights:
(a)
whether by way of indemnity, subrogation, contribution or otherwise; and
(b)
against the company or anyone else;
as if the related entity had paid the amount in discharging, to the extent of that amount, the liability referred to in paragraph
(1)(c).
History
S 588FH(4) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]