Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p69
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 69/110)
Character Range: 327663–330370

"of the creditors passed at a meeting of the creditors".

When liquidator has qualified privilege

90. Section 535 of the Corporations Law is amended by adding at the end the following subsection:

  "(2) In this section:

'liquidator' includes a provisional liquidator.".

Books of company

91.     Section 542 of the Corporations Law is amended by inserting in paragraph (3)(c) "by resolution" after "company".

92.     Section 553 of the Corporations Law is repealed and the following headings and sections are substituted:

"Subdivision A—Admission to proof of debts and claims

Debts or claims that are provable in winding up

"553.(1) Subject to this Division, in every winding up, all debts payable by, and all claims against, the company (present or future, certain or contingent, ascertained or sounding only in damages), being debts or claims the circumstances giving rise to which occurred before the relevant date, are admissible to proof against the company.

"(2) Where, after the relevant date, an order is made under section 91 of the ASC Law against a company that is being wound up, the amount that, pursuant to the order, the company is liable to pay is admissible to proof against the company.

Member cannot prove debt unless contributions paid

"553A. A debt owed by a company to a person in the person's capacity as a member of the company, whether by way of dividends, profits or otherwise, is not admissible to proof against the company unless the person has paid to the company or the liquidator all amounts that the person is liable to pay as a member of the company.

Insolvent companies—penalties and fines not generally provable

"553B.(1) Subject to subsection (2), penalties or fines imposed by a court in respect of an offence against a law are not admissible to proof against an insolvent company.

"(2) An amount payable under a pecuniary penalty order, or an interstate pecuniary penalty order, within the meaning of the Proceeds of Crime Act 1987, is admissible to proof against an insolvent company.

Insolvent companies—mutual credit and set-off

"553C.(1) Subject to subsection (2), where there have been mutual credits, mutual debts or other mutual dealings between an insolvent company that is being wound up and a person who wants to have a debt or claim admitted against the company:

     (a)     an account is to be taken of what is due from the one party to the other in respect of those mutual dealings; and

     (b)     the sum due from the one party is to be set off against any sum due from the other party; and

     (c)     only the balance of the account is admissible to proof against the company, or is payable to the company, as the case may be.