CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 5 - EXTERNAL ADMINISTRATION
PART 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY
History
Pt 5.7B inserted by No 210 of 1992, s 111 (effective 23 June 1993).
CCH Note:
See s 1383(7).
Division 4 - Director liable to compensate company
History
Heading inserted by No 210 of 1992, s 111 (effective 23 June
1993).
Subdivision B - Proceedings by creditor
History
Heading inserted by No 210 of 1992, s 111 (effective 23 June
1993).
SECTION 588T
WHEN CREDITOR MAY SUE FOR COMPENSATION WITHOUT LIQUIDATOR'S CONSENT
588T(1)
[Notice given to liquidator]
This section applies where a notice is given under section
588S.
History
S 588T(1) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588T(2)
[Liquidator withholds consent]
The creditor may begin proceedings in a court under section
588M in relation to the incurring by the company of the debt specified in the notice if:
(a)
as at the end of 3 months after the liquidator receives the notice, he or she has not consented to the creditor beginning such proceedings; and
(b)
on an application made after those 3 months, the court has given leave for the proceedings to begin.
History
S 588T(2) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588T(3)
[Liquidator supplies reasons]
If:
(a)
during those 3 months, the liquidator gives to the creditor a written statement of the reasons why the liquidator thinks that such proceedings should not be begun; and
(b)
the creditor applies for leave under paragraph
(2)(b);
then:
(c)
the creditor must file the statement with the court when so applying; and
(d)
in determining the application, the court is to have regard to the reasons set out in the statement.
History
S 588T(3) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]