THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW

THE CORPORATIONS LAW   82 

The Corporations Law is as follows:...

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 6 - Proof and ranking of claims

Subdivision A - Admission to proof of debts and claims

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Heading inserted by No 210 of 1992, s 92 (effective 23 June 1993).

SECTION 553C   INSOLVENT COMPANIES - MUTUAL CREDIT AND SET-OFF  

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553C(1)  [Company insolvent]  

Subject to subsection (2), where there have been mutual credits, mutual debts or other mutual dealings between an insolvent company that is being wound up and a person who wants to have a debt or claim admitted against the company:

(a)  an account is to be taken of what is due from the one party to the other in respect of those mutual dealings; and

(b)  the sum due from the one party is to be set off against any sum due from the other party; and

(c)  only the balance of the account is admissible to proof against the company, or is payable to the company, as the case may be.

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S 553C(1) inserted by No 210 of 1992, s 92 (effective 23 June 1993).

[ CCH Note: See s 1382-1383.]

553C(2)  [No set-off where knowledge that company insolvent]  

A person is not entitled under this section to claim the benefit of a set-off if, at the time of giving credit to the company, or at the time of receiving credit from the company, the person had notice of the fact that the company was insolvent.

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History

S 553C(2) inserted by No 210 of 1992, s 92 (effective 23 June 1993).

[ CCH Note: See s 1382-1383.]

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