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 588S  

588S   CREDITOR MAY GIVE LIQUIDATOR NOTICE OF INTENTION TO SUE FOR COMPENSATION  
After the end of 6 months beginning when a company begins to be wound up, a creditor of the company may give to the company's liquidator a written notice:

(a) stating that the creditor intends to begin proceedings under section 588M relating to:

(i) the incurring by the company of a specified debt that is owed to the creditor; or

(ii) a specified disposition by the company of property, because of which (and the company ' s insolvency) the creditor has suffered loss or damage; and

(b) asking the liquidator to give to the creditor, within 3 months after receiving the notice:

(i) a written consent to the creditor beginning the proceedings; or

(ii) a written statement of the reasons why the liquidator thinks that proceedings under section 588M in relation to the incurring of that debt, or the making of that disposition, should not be begun.