CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

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

Division 4 - Director liable to compensate company  

Subdivision B - Proceedings by creditor  

SECTION 588U   EVENTS PREVENTING CREDITOR FROM SUING  

588U(1)   [ Creditor cannot begin proceedings]  

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

(a) the company's liquidator has applied under section 588FF in relation to the debt, 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

(c) the company's liquidator has intervened in an application for a civil penalty order against a person in relation to a contravention of subsection 588G(2) in relation to the incurring of the debt.

588U(2)   [ Paramountcy]  

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