Section 601AG of the Corporations Act 2001 (Cth) creates a new cause of action against an insurer that does not arise until the insured company is deregistered. Any defences the insurer would have had against the insured, and any defences the insured would have had against the plaintiff, may be raised in the s 601AG proceedings. Where a subcontractor's breach of duty causes the head contractor's liability to the principal, the head contractor can recover from the subcontractor's insurer under s 601AG if the subcontractor has been deregistered.
The full text is available to signed-in members, including the 3 later cases that cite this judgment.
1 of the 3 citing cases carry a classified treatment. How each court treated it is available to signed-in members.