THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT

Division 3 - Administrator assumes control of company's affairs

SECTION 437E   ORDER FOR COMPENSATION WHERE OFFICER INVOLVED IN VOID TRANSACTION  

437E(1)  [Court may order compensation]  

Where:

(a)  a court finds a person guilty of an offence constituted by a contravention of subsection 437D(5) (including such an offence that is taken to have been committed because of section 5 of the Crimes Act 1914 or that section as it applies as a law of this jurisdiction); and

(b)  the court is satisfied that the company or another person has suffered loss or damage because of the act or omission constituting the offence;

the court may (whether or not it imposes a penalty) order the first-mentioned person to pay compensation to the company or other person, as the case may be, of such amount as the order specifies.

Note:

Section 73A defines when a court is taken to find a person guilty of an offence.

437E(2)  [Enforcement of order]  

An order under subsection (1) may be enforced as if it were a judgment of the court.

437E(3)  [Relief from liability]  

The power of a court under section 1318 to relieve a person from liability as mentioned in that section extends to relieving a person from liability to be ordered under this section to pay compensation.