(1) During the restructuring of a company:
(a) a guarantee of a liability of the company cannot be enforced, as against:
(i) a director of the company who is a natural person; or
(ii) a spouse or relative of such a director; and
(b) without limiting paragraph (a), a proceeding in relation to such a guarantee cannot be begun against such a director, spouse or relative;
except with the leave of the Court and in accordance with such terms (if any) as the Court imposes.
(2) While subsection (1) prevents a person (the creditor ) from:
(a) enforcing as against another person (the guarantor ) a guarantee of a liability of a company; or
(b) beginning a proceeding against another person (the guarantor ) in relation to such a guarantee;
section 1323 applies in relation to the creditor and the guarantor as if:
(c) a civil proceeding against the guarantor had begun under this Act; and
(d) the creditor were the only person of a kind referred to in that section as an aggrieved person.
Note: Under section 1323, the Court can make a range of orders to ensure that a person can meet the person's liabilities.
(3) The effect that section 1323 has because of a particular application of subsection (2) is additional to, and does not prejudice, the effect the section otherwise has.
(4) In this section:
"guarantee" , in relation to a liability of a company, includes a relevant agreement (as defined in section 9) because of which a person other than the company has incurred, or may incur, whether jointly with the company or otherwise, a liability in respect of the liability of the company.
"liability" means a debt, liability or other obligation.