Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

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

Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 3 of Part 8B.6 (for provisions relating to Division 2B ), Division 5 of Part 8B.6 (for provisions relating to Divisions 2 and 2A ) and Division 6 of Part 8B.6 (for provisions relating to Divisions 3 , 4 , 5 and 6 ).

Division 4 - Director liable to compensate company  

Subdivision B - Proceedings by creditor  

SECTION 588U   EVENTS PREVENTING CREDITOR FROM SUING  

588U(1)    

A creditor of a company that is being wound up cannot begin proceedings under section 588M in relation to the incurring of a debt, or the making of a disposition, by the company if:

(a) the company's liquidator has applied under section 588FF in relation to the debt or disposition, or in relation to a transaction under which the debt was incurred; or

(b) the company's liquidator has begun proceedings under section 588M in relation to the incurring of the debt or the making of the disposition; or

(c) the company ' s liquidator has intervened in an application for a civil penalty order against a person relating to:

(i) a contravention of subsection 588G(2) relating to the incurring of the debt; or

(ii) a contravention of subsection 588GAB(2) or 588GAC(2) relating to the disposition; or

(d) the company ' s liquidator has requested ASIC to make an order under subsection 588FGAA(3) relating to the disposition; or

(e) ASIC has made an order under subsection 588FGAA(3) relating to the disposition.

588U(2)    
Subsection (1) has effect despite sections 588R and 588T .