Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 598

598. (1) In this section, a reference to a prescribed person, in relation to a
corporation, shall be construed as a reference to an official manager,
liquidator or provisional liquidator of the corporation or to any other person
authorised by the Commission to make applications under this section or to
make an application under this section in relation to that corporation.

(2) Subject to subsection (3), where, an application by the Commission or a
prescribed person, the Court is satisfied that:

   (a)  a person is guilty of fraud, negligence, default, breach of trust or
        breach of duty in relation to a corporation; and

   (b)  the corporation has suffered, or is likely to suffer, loss or damage
        as a result of the fraud, negligence, default, breach of trust or
        breach of duty; the Court may make such order or orders as it thinks
        appropriate against or in relation to the person (including either or
        both of the orders specified in subsection (4)) and may so make an
        order against or in relation to a person even though the person may
        have committed an offence in respect of the matter to which the order
        relates.

(3) The Court shall not make an order against a person under subsection (2)
unless the Court has given the person the opportunity:

   (a)  to give evidence;

   (b)  to call witnesses to give evidence;

   (c)  to bring other evidence in relation to the matters to which the
        application relates; and

   (d)  to employ, at the person's own expense, a solicitor, or a solicitor
        and counsel, to put to the person, or to any other witness, such
        questions as the Court considers just for the purpose of enabling the
        person to explain or qualify any answers or evidence given by the
        person.

(4) The orders that may be made under subsection (2) against a person include:
(a) an order directing the person to pay money or transfer property to the
corporation; and

   (b)  an order directing the person to pay to the corporation the amount of
        the loss or damage.

(5) Nothing in this section prevents any person from instituting any other
proceedings in relation to matters in respect of which an application may be
made under this section.