Document ID: chunk:federal_register_of_legislation:C2004A04041:section:1990:p188
Version: federal_register_of_legislation:C2004A04041
Segment Type: section
Provision Reference: s 1990 (pt 188/212)
Character Range: 488997–491643

in the winding up.

Ranking of seller's claim in winding up

  "206rd. (1) This section applies where a company is wound up.

"(2) A seller's claim against the company shall be postponed until all other claims in the winding up have been satisfied, other than:

  (a) any other seller's claim against the company; or

SCHEDULE 5—continued

     (b) a sum due to a member of the company in that capacity, whether by way of dividends, profits or otherwise; or

     (c) a claim in connection with the adjustment of the rights of the contributories among themselves.

"(3) A seller's claim against the company is to be taken not to be, and must be paid in priority to, a sum of the kind referred to in paragraph (2) (b).

"(4) A person is not entitled to a distribution of money or property in connection with the adjustment of the rights of the contributories among themselves unless and until all seller's claims against the company have been satisfied.

"(5) All seller's claims against the company rank equally between themselves and, subject to subsection (2), must be paid:

     (a) if the company's property is sufficient to pay them all—in full; or

  (b) otherwise—proportionately.

"Subdivision S—Certificates and Declarations of Compliance

Certificate of compliance

"206sa. (1) This section applies where an offer made by a company under a buy-back scheme is accompanied by a copy of a certificate stating that this Division has been complied with in relation to each buy-back to be made under the buy-back scheme.

"(2) This section also applies where a certificate stating that this Division has been complied with in relation to a specified buy-back that a company proposes to make otherwise than under a buy-back scheme is given to a person.

"(3) A person to whom an offer is made under the buy-back scheme, or the person to whom the certificate is given, as the case may be, is not liable to have an order made against the person under subsection 206 (4) because of an agreement made or performed, or a transaction engaged in, by the person in reliance on the certificate.

"(4) No such agreement or transaction is invalid, or voidable under subsection 206 (2), because it:

  (a) is made or performed, or engaged in, as the case may be; or

     (b) is, for the purposes of section 206, related to an agreement made or performed, or to a transaction engaged in;

in contravention of section 205.

"(5) Subsections (3) and (4) do not apply if, on application by the company or a person who has suffered, or is likely to suffer, loss or damage as a result of the making or performance of an agreement, or

SCHEDULE 5—continued