Postponing subordinate claims
(1) The payment of a subordinate claim against a company is to be postponed until all other debts payable by, and claims against, the company are satisfied. (2) In this section: claim means a claim that is admissible to proof against the company (within the meaning of section 553). debt means a debt that is admissible to proof against the company (within the meaning of section 553). subordinate claim means: (a) a claim for a debt owed by the company to a person in the person’s capacity as a member of the company (whether by way of dividends, profits or otherwise); or (b) any other claim that arises from buying, holding, selling or otherwise dealing in shares in the company.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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