CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY  

Division 2 - Voidable transactions  

SECTION 588FI   CREDITOR WHO GIVES UP BENEFIT OF UNFAIR PREFERENCE MAY PROVE FOR PREFERRED DEBT  

588FI(1)   [ Unfair preference]  

This section applies where:


(a) a transaction is an unfair preference given by a company to a creditor of the company after 23 June 1993; and


(b) at the request of the company's liquidator, because of an order under section 588FF, or for any other reason, the creditor has put the company in the same position as if the transaction had not been entered into.

588FI(2)   [ Prejudicial effects of voidable preference orders]  

A court must not make under section 588FF, on an application relating to the transaction, an order prejudicing a right or interest of the creditor.

588FI(3)   [ Creditor may prove in winding up]  

The creditor may prove in the winding up as if the transaction had not been entered into.


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