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 5 - Liability of holding company for insolvent trading by subsidiary  

SECTION 588WA   SAFE HARBOUR - TAKING REASONABLE STEPS TO ENSURE COMPANY ' S DIRECTORS HAVE THE BENEFIT OF THE DIRECTORS ' SAFE HARBOUR  

588WA(1)    

Subsection 588V(1) does not apply in relation to a corporation that is the holding company of a company, and to a debt, if:

(a) the corporation takes reasonable steps to ensure that either subsection 588GA(1) or 588GAAA(1) (the safe harbour provision ) applies in relation to:

(i) each of the directors of the company; and

(ii) the debt; and

(b) the safe harbour provision does so apply in relation to each of those directors and to the debt.

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

588WA(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.