Section 588W — Corporations Act 2001: Recovery of compensation for loss resulting from insolvent trading

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