THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.8A - EMPLOYEE ENTITLEMENTS

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SECTION 596AH   WHEN EMPLOYEE MAY SUE FOR COMPENSATION WITHOUT LIQUIDATOR'S CONSENT  

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596AH(1)  [Application]  

This section applies if an employee of a company gives a notice under section 596AG in relation to a contravention of section 569AB and to an entitlement.

596AH(2)  [Conditions for commencing proceedings]  

The employee may begin proceedings in a court under section 596AC in relation to the contravention and the entitlement if:

(a)  as at the end of 3 months after the liquidator receives the notice, he or she has not consented to the employee beginning such proceedings; and

(b)  on an application made after those 3 months, the court has given leave for the proceedings to begin.

596AH(3)  [Court to have regard to reasons]  

If:

(a)  during those 3 months, the liquidator gives to the employee a written statement of the reasons why the liquidator thinks that such proceedings should not be begun; and

(b)  the employee applies for leave under paragraph (2)(b);

then:

(c)  the employee must file the statement with the court when so applying; and

(d)  in determining the application, the court is to have regard to the reasons set out in the statement.

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