Document ID: chunk:federal_register_of_legislation:C2007A00132:clause:1_506a
Version: federal_register_of_legislation:C2007A00132
Segment Type: clause
Provision Reference: sch 1 cl 506A
Character Range: 44205–46503

506A  Declarations by liquidator—relevant relationships

Scope

 (1) This section applies if the liquidator of a company is required to convene a meeting under section 497.

Declaration of relevant relationships

 (2) Before convening the meeting, the liquidator must make a declaration of relevant relationships.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Notification of creditors

 (3) The liquidator must:
 (a) give a copy of each declaration under subsection (2) to as many of the company's creditors as reasonably practicable; and
 (b) do so at the same time as the liquidator gives those creditors notice of the meeting.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

 (4) The liquidator must table a copy of each declaration under subsection (2) at the meeting.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Updating of declaration

 (5) If:
 (a) at a particular time, the liquidator makes a declaration of relevant relationships under subsection (2) or this subsection; and
 (b) at a later time:
 (i) the declaration has become out‑of‑date; or
 (ii) the liquidator becomes aware of an error in the declaration;
the liquidator must, as soon as practicable, make a replacement declaration of relevant relationships.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

 (6) The liquidator must table a copy of a replacement declaration under subsection (4):
 (a) if:
 (i) there is a committee of inspection; and
 (ii) the next meeting of the committee of inspection occurs before the next meeting of the company's creditors;
  at the next meeting of the committee of inspection; or
 (b) in any other case—at the next meeting of the company's creditors.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Defence

 (7) In a prosecution for an offence constituted by a failure to include a particular matter in a declaration under this section, it is a defence if the defendant proves that:
 (a) the defendant made reasonable enquiries; and
 (b) after making these enquiries, the defendant had no reasonable grounds for believing that the matter should have been included in the declaration.