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 5 - Liability of holding company for insolvent trading by subsidiary  

SECTION 588W   RECOVERY OF COMPENSATION FOR LOSS RESULTING FROM INSOLVENT TRADING  

588W(1)   [ Liquidator may recover from holding company]  

Where:

(a) a corporation has contravened section 588V in relation to the incurring of a debt by a company; and

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

(c) the debt was wholly or partly unsecured when the loss or damage was suffered; and

(d) the company is being wound up;

the company's liquidator may recover from the corporation, as a debt due to the company, an amount equal to the amount of the loss or damage.

588W(2)   [ Time limit]  

Proceedings under this section may only be begun within 6 years after the beginning of the winding up.