Criminal court may order compensation
(1) If: (a) a court finds a person guilty of an offence under subsection 588G(3) 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 finds a person guilty of an offence based on subsection 588GAB(1) or 588GAC(1) relating to disposition of property by a company; and (b) the court is satisfied that one or more creditors of the company suffered loss or damage because of the disposition and the company’s insolvency; the court may order the person to pay the company compensation equal to the loss or damage (whether or not the court imposes a penalty for the offence).
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.
BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.
Try BriefBridge free