Corporations Act 2001
This section applies where:
(a) a person (in this section called the director ) has contravened subsection 588G(2) or (3) in relation to the incurring of a debt by a company; and
(b) the person (in this section called the creditor ) to whom the debt is owed has suffered loss or damage in relation to the debt because of the company ' s insolvency; and
(c) the debt was wholly or partly unsecured when the loss or damage was suffered; and
(d) the company is being wound up;
whether or not:
(e) the director has been convicted of an offence in relation to the contravention; or
(f) a civil penalty order has been made against the director in relation to the contravention. 588M(1A)
This section also applies if:
(a) a person (the director ) has contravened subsection 588GAB(1) or (2) or 588GAC(1) or (2) relating to disposition of property by a company; and
(b) one or more creditors of the company have suffered loss or damage because of the disposition and the company ' s insolvency; and
(c) the company is being wound up.
This section applies whether or not the director has been convicted of an offence relating to the contravention or a civil penalty order has been made against the director for the contravention.
The company ' s liquidator may recover from the director, as a debt due to the company, an amount equal to the amount of the loss or damage. 588M(3)
The creditor may, as provided in Subdivision B but not otherwise, recover from the director, as a debt due to the creditor, an amount equal to the amount of the loss or damage. 588M(4)
Proceedings under this section may only be begun within 6 years after the beginning of the winding up.
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