Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588t
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588T
Character Range: 2069415–2070452

588T  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);
then:
 (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.