Document ID: chunk:federal_register_of_legislation:C2020A00130:clause:1_453w
Version: federal_register_of_legislation:C2020A00130
Segment Type: clause
Provision Reference: sch 1 cl 453W
Character Range: 31254–33015

453W  Restructuring not to trigger liability of director or relative under guarantee of company's liability
 (1) During the restructuring of a company:
 (a) a guarantee of a liability of the company cannot be enforced, as against:
 (i) a director of the company who is a natural person; or
 (ii) a spouse or relative of such a director; and
 (b) without limiting paragraph (a), a proceeding in relation to such a guarantee cannot be begun against such a director, spouse or relative;
except with the leave of the Court and in accordance with such terms (if any) as the Court imposes.
 (2) While subsection (1) prevents a person (the creditor) from:
 (a) enforcing as against another person (the guarantor) a guarantee of a liability of a company; or
 (b) beginning a proceeding against another person (the guarantor) in relation to such a guarantee;
section 1323 applies in relation to the creditor and the guarantor as if:
 (c) a civil proceeding against the guarantor had begun under this Act; and
 (d) the creditor were the only person of a kind referred to in that section as an aggrieved person.
Note: Under section 1323, the Court can make a range of orders to ensure that a person can meet the person's liabilities.
 (3) The effect that section 1323 has because of a particular application of subsection (2) is additional to, and does not prejudice, the effect the section otherwise has.
 (4) In this section:
guarantee, in relation to a liability of a company, includes a relevant agreement (as defined in section 9) because of which a person other than the company has incurred, or may incur, whether jointly with the company or otherwise, a liability in respect of the liability of the company.
liability means a debt, liability or other obligation.