Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p79
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 79/110)
Character Range: 352613–355310

to be postponed until other debts and claims satisfied

"563A. Payment of 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 to be postponed until all debts owed

to, or claims made by, persons otherwise than as members of the company have been satisfied.

''Subdivision E—Miscellaneous

Interest on debts and claims from relevant date to date of payment

"563B.(1) If, in the winding up of a company, the liquidator pays an amount in respect of an admitted debt or claim, there is also payable to the debtor or claimant, as a debt payable in the winding up, interest, at the prescribed rate, on the amount of the payment in respect of the period starting on the relevant date and ending on the day on which the payment is made.

"(2) Subject to subsection (3), payment of the interest is to be postponed until all other debts and claims in the winding up have been satisfied, other than debts owed to members of the company as members of the company (whether by way of dividends, profits or otherwise).

"(3) If the admitted debt or claim is a debt to which section 554B applied, subsection (2) does not apply to postpone payment of so much of the interest as is attributable to the period starting at the relevant date and ending on the earlier of:

  (a)     the day on which the payment is made; and

  (b)     the future date, within the meaning of section 554B.

Debt subordination

"563C.(1) Nothing in this Division renders a debt subordination by a creditor of a company unlawful or unenforceable, except so far as the debt subordination would disadvantage any creditor of the company who was not a party to, or otherwise concerned in, the debt subordination.

  "(2) In this section:

'debt subordination' means an agreement or declaration by a creditor of a company, however expressed, to the effect that, in specified circumstances:

  (a)     a specified debt that the company owes the creditor; or

  (b)     a specified part of such a debt;

will not be repaid until other specified debts that the company owes are repaid to a specified extent.".

103. The heading to Division 7 of Part 5.6 of the Corporations Law is repealed and the following heading is substituted:

         "Division 7—Effect on certain transactions".

Undue preference

  104. Section 565 of the Corporations Law is amended:

    (a)     by inserting in subsection (1) "before the commencement of Part 5.7B," after "incurred,";

    (b)    by omitting paragraphs (2)(a) and (b) and substituting the following paragraphs:

         "(a) if the company was under official management at any time during the 6 months