When creditor may sue for compensation without liquidator’s consent
(1) This section applies where a notice is given under section 588S. (2) The creditor may begin proceedings in a court under section 588M in relation to the incurring by the company of the debt, or the making by the company of the disposition, specified in the notice if: (a) as at the end of 3 months after the liquidator receives the notice, he or she has not consented to the creditor beginning such proceedings; and (b) on an application made after those 3 months, the court has given leave for the proceedings to begin. (3) If: (a) during those 3 months, the liquidator gives to the creditor a written statement of the reasons why the liquidator thinks that such proceedings should not be begun; and (b) the creditor applies for leave under paragraph (2)(b); then: (c) the creditor must file the statement with the court when so applying; and (d) in determining the application, the court is to have regard to the reasons set out in the statement.
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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