Commonwealth Numbered Acts

CORPORATE LAW REFORM ACT 1992 No. 210 of 1992 - SECT 77

77. After section 486 of the Corporations Law the following sections are
inserted: Court may make order to prevent officer or related entity from
avoiding liability to company

"486A.(1) On the application of a liquidator or provisional liquidator of a
company, the Court may make one or more of the following:

   (a)  an order prohibiting, either absolutely or subject to conditions, an
        officer or related entity of the company from taking or sending out of
        this jurisdiction or out of Australia money or other property of the
        company or of the officer or related entity;

   (b)  an order appointing:

        (i)    a receiver or trustee, with specified powers, of property of an
               officer of the company, or of property of a related entity of
               the company that is a natural person; or

        (ii)   a receiver, or a receiver and manager, with specified powers,
               of property of a related entity of the company that is not a
               natural person;

   (c)  an order requiring an officer of the company, or a related entity of
        the company that is a natural person, to surrender to the Court his or
        her passport and any other specified documents;

   (d)  an order prohibiting an officer of the company, or a related entity of
        the company that is a natural person, from leaving Australia without
        the Court's consent.

"(2) The Court may only make an order under subsection (1) if:

   (a)  the company is being wound up in insolvency or by the Court, or an
        application has been made for the company to be so wound up; and

   (b)  the Court is satisfied that there is at least a prima facie case that
        the officer or related entity is or will become liable:

        (i)    to pay money to the company, whether in respect of a debt, by
               way of damages or compensation or otherwise; or

        (ii)   to account for property of the company; and

   (c)  the Court is also satisfied that there is substantial evidence that
        the officer or related entity:

        (i)    has concealed or removed money or other property, has tried to
               do so, or intends to do so; or

        (ii)   has tried to leave Australia, or intends to do so; in order to
               avoid that liability or its consequences; and

   (d)  the Court thinks it necessary or desirable to make the order in order
        to protect the company's rights against the officer or related entity.

"(3) On hearing an application under subsection (1), the Court must have
regard to any relevant application under section 1323.

"(4) Before considering an application under subsection (1), the Court may, if
in the Court's opinion it is desirable to do so, grant an interim order of the
kind applied for that is expressed to have effect until the application is
determined.

"(5) The Court must not require an applicant under subsection (1) or any other
person, as a condition of granting an interim order under subsection (4), to
give an undertaking as to damages.

"(6) On the application of a person who applied for, or is affected by, an
order under this section, the Court may make a further order discharging or
varying the first-mentioned order.

"(7) An order under subsection (1) may be expressed to operate for a specified
period or until it is discharged by a further order.

"(8) A person must not contravene an order under this section that is
applicable to the person.

"(9) This section has effect subject to the Bankruptcy Act 1966.

"(10) Nothing in this section affects any other powers of the Court. Warrant
to arrest person who is absconding, or who has dealt with property or books,
in order to avoid obligations in connection with winding up

"486B.(1) The Court may issue a warrant for a person to be arrested and
brought before the Court if:

   (a)  a company is being wound up in insolvency or by the Court, or an
        application has been made for a company to be so wound up; and

   (b)  the Court is satisfied that the person:

        (i)    is about to leave Australia in order to avoid:

   (a)  paying money payable to the company; or

   (b)  being examined about the company's affairs; or

   (c)  complying with an order of the Court, or some other obligation, under
        this Chapter in connection with the winding up; or

        (ii)   has concealed or removed property of the company in order to
               prevent or delay the taking of the property into the
               liquidator's custody or control; or

        (iii)  has destroyed, concealed or removed books of the company or is
               about to do so.

"(2) A warrant under subsection (1) may also provide for property or books of
the company in the person's possession to be seized and delivered into the
custody of a specified person.

"(3) A warrant under subsection (1) may only be issued on the application of:

   (a)  a liquidator or provisional liquidator of the company; or

   (b)  the Commission.".