Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p95
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 95/110)
Character Range: 392567–395240

the company's insolvency;

the Court may (whether or not it makes an order under subsection 1317EA(3)) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage.

"(2) A company's liquidator may intervene in an application for a civil penalty order against a person in relation to a contravention of section 588G, unless the application was made under Division 4 of Part 9.4B.

"(3) A company's liquidator who so intervenes is entitled to be heard:

    (a)     only if the Court is satisfied that the person committed the contravention in relation to the incurring of a debt by that company; and

    (b)     only on the question whether the Court should order the person to pay compensation to the company.

Criminal court may order compensation

  "588K.(1) If:

    (a)     a court finds a person guilty of an offence constituted by a contravention of section 588G in relation to the incurring of a debt by a company; and

  (b)     the court is satisfied that:

       (i) the debt is wholly or partly unsecured; and

         (ii) the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency;

the court may (whether or not it imposes a penalty) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage.

Note: Section 73A defines when a court is taken to find a person guilty of an offence.

  "(2) If:

    (a)     a court declares under Division 4 of Part 9.4B that a person has, by failing to prevent a company from incurring a debt, contravened section 588G in relation to the company; and

  (b)     the court is satisfied that:

       (i) the debt is wholly or partly unsecured; and

         (ii) the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency;

the court may (whether or not it makes an order under subsection 1317EA(3)) order the first-mentioned person to pay to the company compensation equal to the amount of that loss or damage.

Enforcement of order under section 588J or 588K

"588L. An order to pay compensation that a court makes under section 588J or 588K may be enforced as if it were a judgment of the court.

Recovery of compensation for loss resulting from insolvent trading

  "588M.(1) This section applies where:

     (a)     a person (in this section called the 'director') has contravened section 588G in relation to the incurring of a debt by a company; and

     (b)     the person (in this section called the 'creditor') to whom the debt is owed has suffered loss or damage in relation to