THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 4 - General

SECTION 542   BOOKS OF COMPANY  

542(1)  (Prima facie evidence)  

Where a company is being wound up, all books of the company and of the liquidator that are relevant to affairs of the company at or subsequent to the commencement of the winding up of the company are, as between the contributories of the company, prima facie evidence of the truth of all matters purporting to be recorded in those books.

542(2)  [Retention for 5 years]  

If a company has been wound up, the liquidator shall retain the books referred to in subsection (1) for a period of 5 years from the date of deregistration of the company and, subject to section 262A of the Income Tax Assessment Act 1936, may, at the end of that period, destroy them.

542(3)  [Retention for shorter period]  

Despite subsection (2) but subject to subsection (4), when a company has been wound up, the books referred to in subsection (1) may be destroyed within a period of 5 years after the deregistration of the company:

(a)  in the case of a winding up by the Court - in accordance with the directions of the Court given pursuant to an application of which at least 14 days notice has been given to the Commission;

(b)  in the case of a members' voluntary winding up - as the company by resolution directs; and

(c)  in the case of a creditors' voluntary winding up - as the committee of inspection directs, or, if there is no such committee, as the creditors of the company by resolution direct.

542(4)  [Commission's consent to destruction necessary]  

The liquidator is not entitled to destroy books as mentioned in paragraph (3)(b) or (c) unless the Commission consents to the destruction of those books.