BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 4A - Orders in relation to property of entity controlled by bankrupt or from which bankrupt derived a benefit  

SECTION 139E   ORDER RELATING TO NET WORTH OF ENTITY OTHER THAN A NATURAL PERSON  

139E(1)   [Circumstances where order may have effect]  

Where, on an application under section 139A for an order in relation to a respondent entity other than a natural person, the Court is satisfied that:


(a) the bankrupt supplied personal services to, or for or on behalf of, the respondent entity at a time or times, during the examinable period and before the end of the bankruptcy, when the bankrupt controlled the entity in relation to the supply of those services;


(b) either:


(i) the bankrupt received for those services no remuneration in money or other property; or

(ii) the remuneration in money or other property that the bankrupt received for those services was substantially less in amount or value than a person supplying those services in similar circumstances might reasonably be expected to have received if the person had dealt with the entity at arm ' s length in relation to the supply of those services; and


(c) the entity ' s net worth at a particular time during the examinable period exceeded by a substantial amount what might reasonably be expected to have been the entity ' s net worth at the last-mentioned time if those services had not been supplied;

subsection (2) has effect.

139E(2)   [Court may make money order]  

The Court may by order direct:


(a) if the entity is a partnership - a partner or partners in the partnership; or


(b) in any other case - the entity;

to pay to the applicant a specified amount not exceeding the amount referred to in paragraph (1)(c).




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.