Commonwealth Numbered Acts
[Search this Act]
CORPORATIONS ACT 2001 No. 50, 2001 - SECT 588FGB
Defences in proceedings under section 588FGA
(1) This section has effect for the purposes of:
- proceedings to recover
from a person an amount payable under subsection 588FGA(2); and
- proceedings under subsection 588FGA(5) against a person of the kind
referred to in paragraph 588FGA(5)(d).
(2) The time when the payment referred to in subsection 588FGA(1) was made is
called the payment time .
(3) It is a defence if it is proved that, at the payment time, the person had
reasonable grounds to expect, and did expect, that the company was solvent at
that time and would remain solvent even if it made the payment.
(4) Without limiting the generality of subsection (3), it is a defence if
it is proved that, at the payment time, the person:
- had reasonable
grounds to believe, and did believe:
- that a competent and reliable person ( the other person ) was responsible
for providing to the first-mentioned person adequate information about whether
the company was solvent; and
- that the other person was fulfilling that responsibility; and
- expected, on the basis of information provided to the first-mentioned
person by the other person, that the company was solvent at that time and
would remain solvent even if it made the payment.
(5) It is a defence if it is proved that, because of illness or for some other
good reason, the person did not take part in the management of the company at
the payment time.
(6) It is a defence if it is proved that:
- the person took all reasonable
steps to prevent the company from making the payment; or
- there were no such steps the person could have taken.
(7) In determining whether a defence under subsection (6) has been
proved, the matters to which regard is to be had include, but are not limited
- any action the person took with a view to appointing an
administrator of the company; and
- when that action was taken; and
- the results of that action.
AustLII: Copyright Policy