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 3 - Duties to prevent insolvent trading and creditor-defeating dispositions  

Subdivision C - Safe harbour from breach of duties  

SECTION 588GAAD   SAFE HARBOUR - PREVENTION OF APPOINTMENT OF EXTERNAL ADMINISTRATOR UNDER THE CASH DISTRIBUTION FRAMEWORK ACT 2026  

588GAAD(1)    
Subsection 588G(2) does not apply in relation to a person and a debt incurred by a body corporate if the debt is incurred:

(a)    at a time while section 73 of the Cash Distribution Framework Act 2026 prevents the appointment of an external administrator; and

(b)    in the ordinary course of the body corporate ' s business, or with the written consent of the Reserve Bank or by order of the Court.

588GAAD(2)    
A person who wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588G(2) bears an evidential burden in relation to that matter.

588GAAD(3)    
In this section:

evidential burden
, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.