Corporations Act 2001
Sections and provisions with full text and the judgments that cite each one.
Section 588GAAB — Safe harbour—companies under restructuring
Safe harbour (1) Subsection 588G(2) does not apply in relation to a person and a debt incurred by a company if the debt is incurred: (a) during the restructuring of the company; and (b) in the…
Section 588GAB — Officer’s duty to prevent creditor-defeating disposition
(1) An officer of a company must not engage in conduct that results in the company making a creditor-defeating disposition of property of the company, if: (a) the company is insolvent; or (b) the…
Section 588GB — Information or books not admissible to support the safe harbour if failure to permit inspection etc.
When books or information not admissible for the safe harbour (1) If, at a particular time: (a) a person fails to permit the inspection of, or deliver, any books of the company in accordance with:…
Section 588ZB — Who may apply for an employee entitlements contribution order
(1) An application to the Court for an employee entitlements contribution order may only be made by: (a) the liquidator of the insolvent company referred to in paragraph 588ZA(1)(a) (the insolvent…
Section 588C — Meaning of property
In this Part: property of a company includes PPSA retention of title property, if the security interest in the property is vested in the company because of the operation of any of the following…
Section 588FC — Meaning of insolvent transaction
A transaction of a company is an insolvent transaction of the company if, and only if, it is an unfair preference given by the company, or an uncommercial transaction of the company, and: (a) any of…
Section 588FGAC — Compliance with orders generally
A person must not engage in conduct if the conduct contravenes an order under subsection 588FGAA(3). Note: Failure to comply with this section is an offence: see subsection 1311(1).
Section 588GAAC — Safe harbour—temporary relief for companies looking for a restructuring practitioner
Safe harbour (1) Subsection 588G(2) does not apply in relation to a person and a debt incurred by a company if: (a) the company is eligible for temporary restructuring relief when the debt is…
Section 588GAC — Procuring creditor-defeating disposition
(1) A person must not engage in conduct of procuring, inciting, inducing or encouraging the making by a company of a disposition of property that results in the company making the disposition of the…
Section 588D — Secured debt may become unsecured
For the purposes of this Part, a secured debt becomes an unsecured debt to the extent that the creditor proves for the debt as an unsecured creditor.
Section 588FD — Meaning of unfair loan
(1) A loan to a company is unfair if, and only if: (a) the interest on the loan was extortionate when the loan was made, or has since become extortionate because of a variation; or (b) the charges in…
Section 588FGAD — Compliance with orders for payment
Enforcement of order for payment generally (1) An amount payable by a person to a company under an order made under paragraph 588FGAA(3)(b) is recoverable by the company as a debt by action against…
Section 588E — Presumptions to be made in recovery proceedings
(1) In this section: recovery proceeding, in relation to a company, means: (a) an application under section 588FF by the company’s liquidator; or (aa) action by ASIC under section 588FGAA; or (ab)…
Section 588FE — Voidable transactions
(1) If a company is being wound up: (a) a transaction of the company may be voidable because of any one or more of subsections (2) to (6) if the transaction was entered into on or after 23 June 1993;…
Section 588FGAE — Court may set aside order by ASIC
(1) The person subject to an order under subsection 588FGAA(3) or any other person interested in such an order may apply to a Court within the period described in subsection (2) to have the order set…
Section 588F — Certain taxation liabilities taken to be debts
(1) For the purposes of this Part, a company’s liability under a remittance provision to pay to the Commissioner of Taxation an amount equal to a deduction made by the company, after 1 July 1993,…
Section 588FF — Courts may make orders about voidable transactions
(1) Where, on the application of a company’s liquidator, a court is satisfied that a transaction of the company is voidable because of section 588FE, the court may make one or more of the following…
Section 588FG — Transaction not voidable as against certain persons
If no benefit or benefit received in good faith without grounds for suspecting insolvency (1) A court is not to make under section 588FF an order materially prejudicing a right or interest of a…
Section 588G — Director’s duty to prevent insolvent trading by company
(1) This section applies if: (a) a person is a director of a company at the time when the company incurs a debt; and (b) the company is insolvent at that time, or becomes insolvent by incurring that…
Section 588FH — Liquidator may recover from related entity benefit resulting from insolvent transaction
(1) This section applies where a company is being wound up and a transaction of the company: (a) is an insolvent transaction of the company; and (b) is voidable under section 588FE; and (c) has had…
Section 588H — Defences about reasonable grounds, illness or reasonable steps
Application (1) This section has effect for the purposes of: (a) proceedings for a contravention of subsection 588G(2) relating to the incurring of a debt at a time (the key time); and (b)…
Section 588FI — Creditor who gives up benefit of unfair preference may prove for preferred debt
(1) This section applies where: (a) a transaction is an unfair preference given by a company to a creditor of the company after 23 June 1993; and (b) at the request of the company’s liquidator,…
Section 588FJ — Circulating security interest created within 6 months before relation-back day
(1) This section applies if: (a) a company is being wound up in insolvency; and (b) the company created a circulating security interest in property of the company at a particular time that is at or…
Section 588J — 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…
Section 588FK — Interpretation and application
(1) A word or expression used in this Division (other than the expression PPSA security interest) has the same meaning as in the Personal Property Securities Act 2009. Note 1: As a result of this…
Section 588K — 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…
Section 588FL — Vesting of PPSA security interests if collateral not registered within time
Scope (1) This section applies if: (a) any of the following events occurs: (i) an order is made, or a resolution is passed, for the winding up of a company; (ii) an administrator of a company is…
Section 588L — Enforcement of order under section 588J or 588K
An order to pay compensation that a court makes under section 588J or 588K may be enforced as if it were a judgment of the court.
Section 588FM — Extension of time for registration
(1) A company, or any person interested, may apply to the Court (within the meaning of section 58AA) for an order fixing a later time for the purposes of subparagraph 588FL(2)(b)(iv). Note: If an…
Section 588M — Recovery of compensation for loss resulting from insolvent trading
(1) This section applies where: (a) a person (in this section called the director) has contravened subsection 588G(2) or (3) in relation to the incurring of a debt by a company; and (b) the person…
Section 588FN — PPSA security interests unaffected by section 588FL
PPSA security interests arising under certain transactions (1) Subsection 588FL(4) (vesting of security interests in company) does not apply to a PPSA security interest provided for by any of the…
Section 588N — Avoiding double recovery
An amount recovered in proceedings under section 588M in relation to the incurring of a debt, or the disposition of property, by a company is to be taken into account in working out the amount (if…
Section 588FO — Certain lessors, bailors and consignors entitled to damages
Scope (1) This section applies if either of the following PPSA security interests is vested in a company under section 588FL: (a) a PPSA security interest of a consignor under a commercial…
Section 588FP — Security interests in favour of an officer of a company etc. void
General rule (1) A security interest, and any powers purporting to be conferred by the instrument under which the security interest is created, are void, and are taken always to have been void, if:…
Section 588P — Effect of sections 588J, 588K and 588M
Sections 588J, 588K and 588M: (a) have effect in addition to, and not in derogation of, any rule of law about the duty or liability of a person because of the person’s office or employment in…
Section 588Q — Certificates evidencing contravention
For the purposes of this Part, a certificate that: (a) purports to be signed by the Registrar or other proper officer of an Australian court; and (b) states: (i) that that court has declared that a…
Section 588R — Creditor may sue for compensation with liquidator’s consent
(1) A creditor of a company that is being wound up may, with the written consent of the company’s liquidator, begin proceedings under section 588M in relation to the incurring by the company of a…
Section 588S — Creditor may give liquidator notice of intention to sue for compensation
After the end of 6 months beginning when a company begins to be wound up, a creditor of the company may give to the company’s liquidator a written notice: (a) stating that the creditor intends to…
Section 588T — When creditor may sue for compensation without liquidator’s consent
(1) This section applies where a notice is given under section 588S. (2) The creditor may begin proceedings in a court under section 588M in relation to the incurring by the company of the debt, or…
Section 588U — Events preventing creditor from suing
(1) A creditor of a company that is being wound up cannot begin proceedings under section 588M in relation to the incurring of a debt, or the making of a disposition, by the company if: (a) the…
Section 588V — When holding company liable
(1) A corporation contravenes this section if: (a) the corporation is the holding company of a company at the time when the company incurs a debt; and (b) the company is insolvent at that time, or…
Section 588W — 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…
Section 588X — Defences about reasonable grounds, illness or reasonable steps
(1) This section has effect for the purposes of proceedings under section 588W. (2) It is a defence if it is proved that, at the time when the debt was incurred, the corporation, and each relevant…
Section 588Y — Application of amount paid as compensation
(1) An amount paid to a company under section 588J, 588K, 588M or 588W is not available to pay a secured debt of the company unless all the company’s unsecured debts have been paid in full. (2)…
Section 588Z — Court may make order imposing liability
Where: (a) a company is being wound up; and (b) on or after 23 June 1993 and within 4 years before the relation-back day, a person contravened section 206A by managing the company; the Court may, on…
Section 589 — Interpretation and application
(1) Sections 590 to 593 (inclusive) apply to a company: (a) that has been wound up or is in the course of being wound up; or (b) that has been in the course of being wound up, where the winding up…
Section 590 — Offences by officers of certain companies
(1) A person who, being a past or present officer or employee of a company to which this section applies: (a) does not disclose to the appropriate officer all the property of the company, and how and…
Section 592 — Incurring of certain debts; fraudulent conduct
(1) Where: (a) a company has incurred a debt before 23 June 1993; and (b) immediately before the time when the debt was incurred: (i) there were reasonable grounds to expect that the company will not…
Section 593 — Powers of Court
(1) Where a person has been convicted of an offence under subsection 592(1) in respect of the incurring of a debt, the Court, on the application of ASIC or the person to whom the debt is payable,…
Section 594 — Certain rights not affected
Except as provided by subsection 592(4) nothing in subsection 592(1) or 593(1) or (2) affects any rights of a person to indemnity, subrogation or contribution.