Section 588K — Corporations Act 2001: Criminal court may order compensation

(1) If: (a) a court finds a person guilty of an offence under subsection 588G(3) in relation to the incurring of a debt by a company; and (b) the court is satisfied that: (i) the debt is wholly or partly unsecured; and (ii) 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 imposes a penalty) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage. Note: Section 73A defines when a court is taken to find a person guilty of an offence. (2) If: (a) a court finds a person guilty of an offence based on subsection 588GAB(1) or 588GAC(1) relating to disposition of property by a company; and (b) the court is satisfied that 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 imposes a penalty for the offence).