THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.8A - EMPLOYEE ENTITLEMENTS

SECTION 596AB   ENTERING INTO AGREEMENTS OR TRANSACTIONS TO AVOID EMPLOYEE ENTITLEMENTS  

596AB(1)  [Person not to enter agreement]  

A person must not enter into a relevant agreement or a transaction with the intention of, or with intentions that include the intention of:

(a)  preventing the recovery of the entitlements of employees of a company; or

(b)  significantly reducing the amount of the entitlements of employees of a company that can be recovered.

596AB(2)  [Company not party or court approval]  

Subsection (1) applies even if:

(a)  the company is not a party to the agreement or transaction; or

(b)  the agreement or transaction is approved by a court.

596AB(3)  [``relevant agreement'']  

A reference in this section to a relevant agreement or a transaction includes a reference to:

(a)  a relevant agreement and a transaction; and

(b)  a series or combination of:

(i) relevant agreements or transactions; or

(ii) relevant agreements; or

(iii) transactions.

596AB(4)  [Contravention]  

If a person contravenes this section by incurring a debt (within the meaning of section 588G), the incurring of the debt and the contravention are linked for the purposes of this Law.