THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

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

Division 4 - Director liable to compensate company

Subdivision A - Proceedings against director

SECTION 588K   CRIMINAL COURT MAY ORDER COMPENSATION  

588K(1)  [Guilty person may be ordered to pay compensation to company]  

If:

(a)  a court finds a person guilty of an offence under subsection 588G(3) in relation to the incurring of a debt by a company; and

(b)  the court is satisfied that:

(i) the debt is wholly or partly unsecured; and

(ii) the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency;

the court may (whether or not it imposes a penalty) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage.

Note:

Section 73A defines when a court is taken to find a person guilty of an offence.

588K(2)  (Repealed by No 156 of 1999, Sch 3, Pt 7 (effective 13 March 2000).)