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 5 - Liability of holding company for insolvent trading by subsidiary
History
Heading inserted by No 210 of 1992, s 111 (effective 23 June
1993).
SECTION 588W
RECOVERY OF COMPENSATION FOR LOSS RESULTING FROM INSOLVENT TRADING
588W(1)
[Liquidator may recover from holding company]
Where:
(a)
a corporation has contravened section
588V in relation to the incurring of a debt by a company; and
(b)
the person 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;
the company's liquidator may recover from the corporation, as a debt due to the company, an amount equal to the amount of the loss or damage.
History
S 588W(1) amended by No 104 of 1994, Sch 1 (effective 16 October 1995).
[
CCH Note:
See s 1400.]
S 588W(1) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
588W(2)
[Time limit]
Proceedings under this section may only be begun within 6 years after the beginning of the winding up.
History
S 588W(2) inserted by No 210 of 1992, s 111 (effective 23 June 1993).
[
CCH Note:
See s 1383(7).]
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