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CORPORATIONS ACT 2001 - SECT 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 partly unsecured; and

                             (ii)  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 imposes a penalty) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage.

Note:          Section 73A defines when a court is taken to find a person guilty of an offence.

             (2)  If:

                     (a)  a court finds a person guilty of an offence based on subsection 588GAB(1) or 588GAC(1) relating to disposition of property by a company; and

                     (b)  the court is satisfied that 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 imposes a penalty for the offence).



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