Corporations Regulations 2001

This regulation is made for the purposes of paragraph 500AE(3)(b) of the Act.

An unfair preference of a company is not voidable despite subsection 588FE(2) of the Act, provided either subregulation (3) or (4) is satisfied.

This subregulation is satisfied if:

the company is subject to the simplified liquidation process; and

the transaction was entered into, or an act was done for the purposes of giving effect to it, before the day that is 3 months before the relation‑back day; and

no creditor under the transaction is a related entity of the company.

This subregulation is satisfied if:

the company is subject to the simplified liquidation process; and

the transaction was entered into, or an act was done for the purposes of giving effect to it:

during the 3 months ending on the relation‑back day; or

after that day but on or before the day when the winding up began; and

either:

the transaction results in the creditor receiving from the company no more than $30,000 in value; or

if the transaction forms part of a series of related transactions, all of the related transactions result in the creditor receiving from the company no more than $30,000 in value; and

no creditor under the transaction is a related entity of the company.