THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 6 - Proof and ranking of claims

Subdivision D - Priorities

SECTION 563   PROVISIONS RELATING TO INJURY COMPENSATION  

563(1)  [Cases to which sec 556(1)(f) does not apply]  

Notwithstanding anything in section 556, paragraph 556(1)(f) does not apply in relation to the winding up of a company in any case where:

(a)  the company is being wound up voluntarily merely for the purpose of reconstruction or of amalgamation with another company and the right to the injury compensation has, on the reconstruction or amalgamation, been preserved to the person entitled to it; or

(b)  the company has entered into a contract with an insurer in respect of any liability for injury compensation.

563(2)  [Periodical payments]  

Where injury compensation is payable by way of periodical payments, the amount of that compensation shall, for the purposes of paragraph 556(1)(f), be taken to be the lump sum for which those periodical payments could, if redeemable, be redeemed under the law under which the periodical payments are made.