Corporations Act 2001

Where a person has been convicted of an offence under subsection 592(1) in respect of the incurring of a debt, the Court, on the application of ASIC or the person to whom the debt is payable, may, if it thinks it proper to do so, declare that the first‑mentioned person is personally responsible without any limitation of liability for the payment to the person to whom the debt is payable of an amount equal to the whole of the debt or such part of it as the Court thinks proper.

Where a person has been convicted of an offence under subsection 592(6), the Court, on the application of ASIC or of a prescribed person, may, if it thinks it proper to do so, declare that the first‑mentioned person is personally responsible without any limitation of liability for the payment to the company of the amount required to satisfy so much of the debts of the company as the Court thinks proper.

In relation to a company in respect of which a conviction referred to in subsection (2) relates:

the appropriate officer; and

a creditor or contributory of the company authorised by ASIC to make an application under that subsection; and

if the company was a company to which section 592 applied by reason of paragraph 589(1)(c)—a member of the company;

Where the Court makes a declaration under subsection (1) in relation to a person, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration.

In particular, the Court may order that the liability of the person under the declaration is a charge:

on a debt or obligation due from the company to the person; or

on a right or interest under a security interest in any property of the company held by or vested in the person or a person on the person’s behalf, or a person claiming as assignee from or through the person liable or a person acting on the person’s behalf.

The Court may, from time to time, make such further order as it thinks proper for the purpose of enforcing a charge imposed under subsection (5).

For the purpose of subsection (5), assignee includes a person to whom or in whose favour, by the directions of the person liable, the debt, obligation or security interest was created, issued or transferred or the interest created, but does not include an assignee for valuable consideration, not including consideration by way of marriage, given in good faith and without actual knowledge of any of the matters upon which the conviction or declaration was made.

On the hearing of an application under subsection (1) or (2), the appropriate officer or other applicant may give evidence or call witnesses.