Section 588GAAA — Corporations Act 2001 (Cth)

Safe harbour

(1) Subsection 588G(2) does not apply in relation to a person and a debt incurred by a company if the debt is incurred:

(a) in the ordinary course of the company’s business; and

(b) during:

(i) the 6‑month period starting on the day this section commences; or

(ii) any longer period that starts on the day this section commences and that is prescribed by the regulations for the purposes of this subparagraph; and

(c) before any appointment during that period of an administrator, restructuring practitioner or liquidator of the company.

(2) A person who wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588G(2) bears an evidential burden in relation to that matter.

When the safe harbour does not apply

(3) Subsection (1) is taken never to have applied in relation to a person and a debt in the circumstances prescribed by the regulations for the purposes of this subsection.

Definitions

(4) In this section:

evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.

Related sections

• s 588GAB — Officer’s duty to prevent creditor‑defeating disposition
• s 588GAC — Procuring creditor‑defeating disposition
• s 588GA — Safe harbour—taking course of action reasonably likely to lead to a better outcome for the company
• s 588GAAB — Safe harbour—companies under restructuring
• s 588GAAC — Safe harbour—temporary relief for companies looking for a restructuring practitioner
• s 588GB — Information or books not admissible to support the safe harbour if failure to permit inspection etc.

Research how courts apply s 588GAAA

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