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 2 - Voidable transactions  

Subdivision E - Various rules about voidable transactions  

SECTION 588FI   CREDITOR WHO GIVES UP BENEFIT OF UNFAIR PREFERENCE MAY PROVE FOR PREFERRED DEBT  

588FI(1)    
This section applies where:

(a) a transaction is an unfair preference given by a company to a creditor of the company after 23 June 1993; and

(b) at the request of the company ' s liquidator, because of an order under section 588FF or 588FGAA , or for any other reason, the creditor has put the company in the same position as if the transaction had not been entered into.

588FI(2)    
A court must not make under section 588FF , on an application relating to the transaction, an order prejudicing a right or interest of the creditor.

588FI(2A)    

ASIC must not make an order under section 588FGAA that relates to the transaction and prejudices a right or interest of the creditor.

588FI(3)    
The creditor may prove in the winding up as if the transaction had not been entered into.