Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 589

589. (1) Sections 590 to 593 (inclusive) apply to a company:

   (a)  that has been wound up or is in the course of being wound up;

   (b)  that has been in the course of being wound up, where the winding up
        has been stayed or terminated by an order under section 482;

   (c)  that has at any time been, or is, under official management;

   (d)  affairs of which are or have been under investigation;

   (e)  in respect of property of which a receiver, or a receiver and manager,
        has at any time been appointed, whether by the Court or under a power
        contained in an instrument, whether or not the appointment has been
        terminated;

   (f)  that has ceased to carry on business or is unable to pay its debts; or

   (g)  that has entered into a compromise or arrangement with its creditors.

(2) For the purposes of this Part, affairs of a company are or have been under
investigation if, and only if:

   (a)  the Commission is investigating, or has at any time investigated,
        under Division 1 of Part 4 of the Commission Act:

        (i)    matters being, or connected with, affairs of the company; or

        (ii)   matters including such matters; or

   (b)  affairs of the company have at any time been under investigation under
        Part VII of the Companies Act 1981 or the provisions of a law, or of a
        previous law, of a State or Territory that correspond to that Part.

(3) For the purposes of this Part, a company shall be deemed to have ceased to
carry on business if, and only if, the Commission has:

   (a)  sent to the company by post a letter under subsection 572 (1) and has
        not, within the next succeeding period of one month from the date of
        the letter, received an answer to the effect that the company is
        carrying on business; or

   (b)  published a notice under subsection 572 (3).

(4) For the purposes of this Part, a company shall be deemed to be unable to
pay its debts if, and only if, execution or other process issued on a
judgment, decree or order of a court (whether or not an Australian court) in
favour of a creditor of the company is returned unsatisfied in whole or in
part.

(5) In this Part:

"appropriate officer" means:

   (a)  in relation to a company that has been, has been being or is being
        wound up-the liquidator;

   (b)  in relation to a company that has been or is under official
        management-the official manager;

   (c)  in relation to a company affairs of which are or have been under
        investigation-the Commission or the NCSC, as the case requires;

   (d)  in relation to a company in respect of property of which a receiver,
        or a receiver and manager, has been appointed-the receiver or the
        receiver and manager;

   (e)  in relation to a company that has ceased to carry on business or is
        unable to pay its debts-the Commission or the NCSC, as the case
        requires; and

   (f)  in relation to a company that has entered into a compromise or
        arrangement with its creditors-the person appointed by the Court to
        administer the compromise or arrangement;

"relevant day" means the day on which:

   (a)  in relation to a company that has been, has been being or is being
        wound up-under this Act the winding up commenced or is deemed to have
        commenced; (b) in relation to a company that has been or is under
        official management-it was determined that the company should be
        placed under official management;

   (c)  in relation to a company affairs of which are or have been under
        investigation:

        (i)    if paragraph 589 (2) (a) applies-the investigation began; or

        (ii)   if paragraph 589 (2) (b) applies-a direction was given to the
               NCSC to arrange for the investigation;

   (d)  in relation to a company in respect of property of which a receiver,
        or a receiver and manager, has been appointed-the receiver, or the
        receiver and manager, was appointed;

   (e)  in relation to a company that is unable to pay its debts-the execution
        or other process was returned unsatisfied in whole or in part;

   (f)  in relation to a company that has ceased to carry on business-a letter
        was first sent to the company, or a notice was first published in
        relation to the company, as the case may be, under section 572; or

   (g)  in relation to a company that has entered into a compromise or
        arrangement with its creditors-the compromise or arrangement was
        approved by the Court.

(6) This Part applies in relation to a Division 2, 3 or 4 company:

   (a)  as if, in this Part (other than section 595) as so applying:

        (i)    a reference to the company included a reference to the company
               as it existed at a time before its registration day (including
               a time before the commencement of this subsection);

        (ii)   a reference to a provision of this Act included a reference to
               a law corresponding to that provision; and

        (iii)  a reference, in relation to a provision of this Act, to the
               Commission included a reference to the NCSC; and

   (b)  with such other modifications as the circumstances require.