Creditor who gives up benefit of unfair preference may prove for preferred debt
588FI Creditor who gives up benefit of unfair preference may prove for preferred debt
This section applies where:
a transaction is an unfair preference given by a company to a creditor of the company after 23 June 1993; and
at the request of the company’s liquidator, because of an order under section 588FF or 588FGAA, or for any other reason, the creditor has put the company in the same position as if the transaction had not been entered into.
A court must not make under section 588FF, on an application relating to the transaction, an order prejudicing a right or interest of the creditor.
ASIC must not make an order under section 588FGAA that relates to the transaction and prejudices a right or interest of the creditor.
The creditor may prove in the winding up as if the transaction had not been entered into.
This Act’s bill:Explanatory memorandumSecond reading speech
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