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 4 - Director liable to compensate company
History
Heading inserted by No 210 of 1992, s 111 (effective 23 June
1993).
Subdivision A - Proceedings against director
SECTION 588M
RECOVERY OF COMPENSATION FOR LOSS RESULTING FROM INSOLVENT TRADING
588M(1)
[Director contravened subsec 588G(2) or (3)]
This section applies where:
(a)
a person (in this section called the
``director''
) has contravened subsection
588G(2) or
(3) in relation to the incurring of a debt by a company; and
(b)
the person (in this section called the
``creditor''
) to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency; and
(c)
the debt was wholly or partly unsecured when the loss or damage was suffered; and
(d)
the company is being wound up;
whether or not:
(e)
the director has been convicted of an offence in relation to the contravention; or
(f)
a civil penalty order has been made against the director in relation to the contravention.
History
S 588M(1) amended by No 156 of 1999, Sch 3, Pt 7 (effective 13 March 2000).
S 588M(1) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588M(2)
[Liquidator may recover from director]
The company's liquidator may recover from the director, as a debt due to the company, an amount equal to the amount of the loss or damage.
History
S 588M(2) amended by No 104 of 1994, Sch 1 (effective 16 October 1995).
[
CCH Note:
See s 1400.]
S 588M(2) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588M(3)
[Creditor's power to recover]
The creditor may, as provided in Subdivision B but not otherwise recover from the director, as a debt due to the creditor, an amount equal to the amount of the loss or damage.
History
S 588M(3) amended by No 104 of 1994, Sch 1 (effective 16 October 1995).
[
CCH Note:
See s 1400.]
S 588M(3) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588M(4)
[Time limit]
Proceedings under this section may only be begun within 6 years after the beginning of the winding up.
History
S 588M(4) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]