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

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History

Pt 5.7B inserted by No 210 of 1992, s 111 (effective 23 June 1993).

CCH Note: See s 1383(7).

Division 5 - Liability of holding company for insolvent trading by subsidiary

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Heading inserted by No 210 of 1992, s 111 (effective 23 June 1993).

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

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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.

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History

S 588W(1) amended by No 104 of 1994, Sch 1 (effective 16 October 1995).

[ CCH Note: See s 1400.]

S 588W(1) inserted by No 210 of 1992, s 111 (effective 23 June 1993).

[ CCH Note: See s 1383(7).]

588W(2)  [Time limit]  

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

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History

S 588W(2) inserted by No 210 of 1992, s 111 (effective 23 June 1993).

[ CCH Note: See s 1383(7).]

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