THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

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

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Division 2 - Voidable transactions

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SECTION 588FE   VOIDABLE TRANSACTIONS  

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588FE(1)  [Effect of section]  

Where a company is being wound up, a transaction of the company that was entered into at or after the commencement of this Part may be voidable because of any one or more of the following subsections.

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588FE(2)  [Insolvent transaction]  

The transaction is voidable if:

(a)  it is an insolvent transaction of the company; and

(b)  it was entered into, or an act was done for the purpose of giving effect to it:

(i) during the 6 months ending on the relation-back day; or
(ii) after that day but on or before the day when the winding up began.
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588FE(3)  [Insolvent and uncommercial transaction]  

The transaction is voidable if:

(a)  it is an insolvent transaction, and also an uncommercial transaction, of the company; and

(b)  it was entered into, or an act was done for the purpose of giving effect to it, during the 2 years ending on the relation-back day.

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588FE(4)  [Insolvent transaction to which related entity a party]  

The transaction is voidable if:

(a)  it is an insolvent transaction of the company; and

(b)  a related entity of the company is a party to it; and

(c)  it was entered into, or an act was done for the purpose of giving effect to it, during the 4 years ending on the relation-back day.

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588FE(5)  [Insolvent transaction for purpose of defeating creditors]  

The transaction is voidable if:

(a)  it is an insolvent transaction of the company; and

(b)  the company became a party to the transaction for the purpose, or for purposes including the purpose, of defeating, delaying, or interfering with, the rights of any or all of its creditors on a winding up of the company; and

(c)  the transaction was entered into, or an act done was for the purpose of giving effect to the transaction, during the 10 years ending on the relation-back day.

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588FE(6)  [Unfair loan]  

The transaction is voidable if it is an unfair loan to the company made at any time on or before the day when the winding up began.

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588FE(7)  [Act includes omission]  

A reference in this section to doing an act includes a reference to making an omission.

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