Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY  

Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 3 of Part 8B.6 (for provisions relating to Division 2B ), Division 5 of Part 8B.6 (for provisions relating to Divisions 2 and 2A ) and Division 6 of Part 8B.6 (for provisions relating to Divisions 3 , 4 , 5 and 6 ).

Division 4 - Director liable to compensate company  

Subdivision B - Proceedings by creditor  

SECTION 588T   WHEN CREDITOR MAY SUE FOR COMPENSATION WITHOUT LIQUIDATOR'S CONSENT  

588T(1)    
This section applies where a notice is given under section 588S .

588T(2)    

The creditor may begin proceedings in a court under section 588M in relation to the incurring by the company of the debt, or the making by the company of the disposition, 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.

588T(3)    
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.