Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p70
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 70/110)
Character Range: 330162–332767

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.

"(2) A person is not entitled under this section to claim the benefit of a set-off if, at the time of giving credit to the company, or at the time of receiving credit from the company, the person had notice of the fact that the company was insolvent.

Debts or claims may be proved formally or informally

"553D.(1) A debt or claim must be proved formally if the liquidator, in accordance with the regulations, requires it to be proved formally.

  "(2) A debt or claim that is not required to be proved formally:

   (a)     may be proved formally; or

     (b)     may be proved in some other way, subject to compliance with the requirements of the regulations (if any) relating to the informal proof of debts and claims.

"(3) A debt or claim is proved formally if it satisfies the requirements of the regulations relating to the formal proof of debts and claims.

Application of Bankruptcy Act to winding up of insolvent company

"553E. Subject to this Division and to sections 206RD and 279, in the winding up of an insolvent company the same rules are to prevail and be observed with regard to debts provable as are in force for the time being under the Bankruptcy Act 1966 in relation to the estates of bankrupt persons (except the rules in sections 82 to 94 (inclusive) and 96 of that Act), and all persons who in any such case would be entitled to prove for and receive dividends out of the property of the company may come in under the winding up and make such claims against the company as they respectively are entitled to because of this section.

"Subdivision B—Computation of debts and claims".

General rule — compute amount as at relevant date

  93. Section 554 of the Corporations Law is amended:

    (a)     by inserting in subsection (1) "or claim" after "debt" (wherever occurring);

    (b)    by omitting from subsection (2) "required to be paid under subsection 557(1)" and substituting "admissible to proof under subsection 553(2)".

94. After section 554 of the Corporations Law the following sections and headings are inserted:

Determination of value of debts and claims of uncertain value

"554A.(1) This section applies where, in the winding up of a company, the liquidator admits a debt or claim that, as at the relevant date, did not bear a certain value.

  "(2) The liquidator must:

     (a)     make an estimate of the value of the debt or claim as at the