Commonwealth Consolidated Acts

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Recovery of compensation for loss resulting from insolvent trading

             (1)  Where:

                     (a)  a corporation has contravened section 588V in relation to the incurring of a debt by a company; and

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

                     (c)  the debt was wholly or partly unsecured when the loss or damage was suffered; and

                     (d)  the company is being wound up;

the company's liquidator may recover from the corporation, as a debt due to the company, an amount equal to the amount of the loss or damage.

             (2)  Proceedings under this section may only be begun within 6 years after the beginning of the winding up.

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