Section 588J — Corporations Act 2001: On application for civil penalty order, Court may order compensation

(1) Where, on an application for a civil penalty order against a person in relation to a contravention of subsection 588G(2), the Court is satisfied that: (a) the person committed the contravention in relation to the incurring of a debt by a company; and (b) the debt is wholly or partly unsecured; and (c) the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company’s insolvency; the Court may (whether or not it makes a pecuniary penalty order under section 1317G or an order under section 206C disqualifying a person from managing corporations) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage. (1A) If, on an application for a civil penalty order against a person for a contravention of subsection 588GAB(2) or 588GAC(2) relating to a disposition of property of a company, the Court is satisfied that: (a) the person contravened the subsection; and (b) one or more creditors of the company suffered loss or damage because of the disposition and the company’s insolvency; the Court may order the person to pay the company compensation equal to the loss or damage (whether or not the Court makes a pecuniary penalty order under section 1317G or an order under section 206C disqualifying the person from managing corporations). (2) A company’s liquidator may intervene in an application for a civil penalty order against a person in relation to a contravention of subsection 588G(2), 588GAB(2) or 588GAC(2) relating to the company. (3) A company’s liquidator who so intervenes is entitled to be heard: (a) only if the Court is satisfied that the person committed the contravention; and (b) only on the question whether the Court should order the person to pay compensation to the company.