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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 588T

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 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.



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