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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 563C
(1) Nothing in this Division renders a debt subordination by a creditor of a
company unlawful or unenforceable, except so far as the debt subordination
would disadvantage any creditor of the company who was not a party to, or
otherwise concerned in, the debt subordination.
(2) In this section:
"debt subordination" means an agreement or declaration by a creditor of a
company, however expressed, to the effect that, in specified circumstances:
- a specified debt that the company owes the creditor; or
- a specified part of such a debt;
will not be repaid until other specified debts that the company owes are
repaid to a specified extent.
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