THE CORPORATIONS LAW

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 588S   CREDITOR MAY GIVE LIQUIDATOR NOTICE OF INTENTION TO SUE FOR COMPENSATION  

588S    After the end of 6 months beginning when a company begins to be wound up, a creditor of the company may give to the company's liquidator a written notice:

(a)  stating that the creditor intends to begin proceedings under section 588M in relation to the incurring by the company of a specified debt that is owed to the creditor; and

(b)  asking the liquidator to give to the creditor, within 3 months after receiving the notice:

(i) a written consent to the creditor beginning the proceedings; or

(ii) a written statement of the reasons why the liquidator thinks that proceedings under section 588M in relation to the incurring of that debt should not be begun.