Section 588GAAB — 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) during the restructuring of the company; and

(b) in the ordinary course of the company’s business, or with the consent of the restructuring practitioner or by order of the Court.

(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 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 588GAAA — Safe harbour—temporary relief in response to the coronavirus
• 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.
• s 588H — Defences about reasonable grounds, illness or reasonable steps

Research how courts apply s 588GAAB

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