Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588v
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588V
Character Range: 2071651–2072795

588V  When holding company liable
 (1) A corporation contravenes this section if:
 (a) the corporation is the holding company of a company at the time when the company incurs a debt; and
 (b) the company is insolvent at that time, or becomes insolvent by incurring that debt, or by incurring at that time debts including that debt; and
 (c) at that time, there are reasonable grounds for suspecting that the company is insolvent, or would so become insolvent, as the case may be; and
 (d) one or both of the following subparagraphs applies:
 (i) the corporation, or one or more of its directors, is or are aware at that time that there are such grounds for so suspecting;
 (ii) having regard to the nature and extent of the corporation's control over the company's affairs and to any other relevant circumstances, it is reasonable to expect that:
 (A) a holding company in the corporation's circumstances would be so aware; or
 (B) one or more of such a holding company's directors would be so aware; and
 (e) that time is at or after the commencement of this Act.
 (2) A corporation that contravenes this section is not guilty of an offence.