Commonwealth Consolidated Acts

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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 the effect of discharging, to the extent of a particular amount, a liability (whether under a guarantee or otherwise and whether contingent or otherwise) of a related entity of the company.

  (2)   The company's liquidator may recover from the related entity, as a debt due to the company, an amount equal to the amount referred to in paragraph   (1)(c).

  (3)   In deciding what orders (if any) to make under section   588FF or 588FGAA on an application relating to the transaction, a court or ASIC must take into account any amount recovered under subsection   (2) of this section.

  (4)   If the liquidator recovers an amount under subsection   (2) from the related entity, the related entity has the same rights:

  (a)   whether by way of indemnity, subrogation, contribution or otherwise; and

  (b)   against the company or anyone else;

as if the related entity had paid the amount in discharging, to the extent of that amount, the liability referred to in paragraph   (1)(c).

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