Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS ACT 2001 - SECT 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 in relation to the incurring of a debt by a company; and

                     (b)  the debt is wholly or partly unsecured; and

                     (c)  the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency;

the Court may (whether or not it makes a pecuniary penalty order under section 1317G or an order under section 206C disqualifying a person from managing corporations) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage.

          (1A)  If, on an application for a civil penalty order against a person for a contravention of subsection 588GAB(2) or 588GAC(2) relating to a disposition of property of a company, the Court is satisfied that:

                     (a)  the person contravened the subsection; and

                     (b)  one or more creditors of the company suffered loss or damage because of the disposition and the company's insolvency;

the Court may order the person to pay the company compensation equal to the loss or damage (whether or not the Court makes a pecuniary penalty order under section 1317G or an order under section 206C disqualifying the person from managing corporations).

             (2)  A company's liquidator may intervene in an application for a civil penalty order against a person in relation to a contravention of subsection 588G(2), 588GAB(2) or 588GAC(2) relating to the company.

             (3)  A company's liquidator who so intervenes is entitled to be heard:

                     (a)  only if the Court is satisfied that the person committed the contravention; and

                     (b)  only on the question whether the Court should order the person to pay compensation to the company.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback