Commonwealth Consolidated Acts

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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 the making by the company of the disposition, specified in the notice if:

                     (a)  as at the end of 3 months after the liquidator receives the notice, he or she has not consented to the creditor beginning such proceedings; and

                     (b)  on an application made after those 3 months, the court has given leave for the proceedings to begin.

             (3)  If:

                     (a)  during those 3 months, the liquidator gives to the creditor a written statement of the reasons why the liquidator thinks that such proceedings should not be begun; and

                     (b)  the creditor applies for leave under paragraph (2)(b);


                     (c)  the creditor must file the statement with the court when so applying; and

                     (d)  in determining the application, the court is to have regard to the reasons set out in the statement.

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