Western Australian Current Acts Western Australian Current Acts (1) In proceedings
under this Act, the court hearing the proceedings may set aside or restrain
the making of an instrument or disposition by or on behalf of, or by direction
or in the interest of, a party which is made or proposed to be made to defeat
an existing or anticipated order under this Act or which, irrespective of
intention, is likely to defeat any such order.
(1A) If a de facto
partner is a bankrupt and the bankruptcy trustee is a party to proceedings
under this Act, the court hearing the proceedings may set aside or restrain
the making of an instrument or disposition —
(a)
which is made or proposed to be made by or on behalf of, or by direction or in
the interest of, the bankrupt; and
(b)
which is made or proposed to be made to defeat an existing or anticipated
order in those proceedings or which, irrespective of intention, is likely to
defeat any such order.
(1B) If a de facto
partner is a debtor subject to a personal insolvency agreement and the trustee
of the agreement is a party to proceedings under this Act, the court hearing
the proceedings may set aside or restrain the making of an instrument or
disposition —
(a)
which is made or proposed to be made by or on behalf of, or by direction or in
the interest of, the debtor; and
(b)
which is made or proposed to be made to defeat an existing or anticipated
order in those proceedings or which, irrespective of intention, is likely to
defeat any such order.
(2) A court referred
to in subsection (1), (1A) or (1B) may order that any money or real or
personal property dealt with by any instrument or disposition referred to in
subsection (1), (1A) or (1B) may be taken in execution or charged with the
payment of such sums for costs or maintenance as the court directs, or that
the proceeds of a sale are to be paid into court to abide its order.
(3) A court referred
to in subsection (1), (1A) or (1B) must have regard to the interests of, and
must make any order proper for the protection of, a bona fide purchaser or
other person interested.
(4) A party or a
person acting in collusion with a party may be ordered to pay the costs of any
other party, or of a bona fide purchaser or other person interested, of and
incidental to any such instrument or disposition and the setting aside or
restraining of the instrument or disposition.
(4AA) An application
may be made to a court for an order under this section by —
(a) a
party to the proceedings; or
(b) a
creditor of a party to the proceedings if the creditor may not be able to
recover their debt if the instrument or disposition were made; or
(c) any
other person whose interests would be affected by the making of the instrument
or disposition.
(4a) In addition to
the powers a court referred to in subsection (1), (1A) or (1B) has under this
section, the court may also do any or all of the things listed in
section 205ZI(1).
(5) In this section
—
disposition includes —
(a) a
sale or gift; and
(b) the
issue, grant, creation, transfer or cancellation of, or a variation of the
rights attaching to, an interest in a company or a trust;
interest —
(a) in a
company includes —
(i)
a share in or debenture of the company; and
(ii)
an option over a share in or debenture of the company
(whether the share or debenture is issued or not);
and
(b) in a
trust includes —
(i)
a beneficial interest in the trust; and
(ii)
the interest of a settlor in property subject to the
trust; and
(iii)
a power of appointment under the trust; and
(iv)
a power to rescind or vary a provision of, or to rescind
or vary the effect of the exercise of a power under, the trust; and
(v)
an interest that is conditional, contingent or deferred.
[Section 222 amended: No. 35 of 2006 s. 60 and 74;
No. 28 of 2022 s. 29.]