A liquidator who enters into a litigation funding agreement without obtaining the prior approval required by s 477(2B) of the Corporations Law may obtain retrospective approval from the court where the agreement was proper and beneficial to creditors. The court may exercise power under s 479(3), s 1322(4), or its inherent jurisdiction to validate such an agreement. The absence of the required sanction under s 477(2B) affects only the relationship between the liquidator and the company or its creditors and cannot be objected to by third parties.
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