Section 596ACA — Corporations Act 2001: Person who contravenes section 596AC liable to compensate for loss

(1) A person is liable to pay compensation under subsection (3) or (4) if: (a) the person has contravened subsection 596AC(1), (2), (3) or (4) in relation to the entitlements of employees of a company; and (b) employees of the company have suffered loss or damage because of the relevant agreement or the transaction referred to in subsection 596AC(1) or (3), or because of action taken to give effect to the relevant agreement or the transaction; and (c) a liquidator has been appointed to the company. (2) The person may be liable whether or not: (a) a Court has made a declaration of contravention or a pecuniary penalty order under Part 9.4B that applies to the person in relation to the contravention; or (b) the person has been convicted of an offence based on section 596AB in relation to the matters giving rise to the contravention; or (c) the company has been wound up. (3) The company’s liquidator may recover from the person, as a debt due to the company, an amount equal to the loss or damage referred to in paragraph (1)(b). (4) An employee who suffers loss or damage referred to in paragraph (1)(b) may, as provided in section 596AF (but not otherwise), recover from the person, as a debt due to the employee, an amount equal to the loss or damage. (5) An amount recovered under subsection (4) is to be taken into account in working out the amount (if any) for which the employee may prove in the liquidation of the company. (6) Proceedings under this section may only be begun within 6 years after the company begins to be wound up.