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CORPORATIONS ACT 2001 - SECT 588K Criminal court may order compensation

CORPORATIONS ACT 2001 - SECT 588K

Criminal court may order compensation

  (1)   If:

  (a)   a court finds a person guilty of an offence under subsection   588G(3) in relation to the incurring of a debt by a company; and

  (b)   the court is satisfied that:

  (i)   the debt is wholly or partly unsecured; and

  (ii)   the person to whom the debt is owed has suffered loss or damage in relation to the debt because of the company's insolvency;

the court may (whether or not it imposes a penalty) order the first - mentioned person to pay to the company compensation equal to the amount of that loss or damage.

Note:   Section   73A defines when a court is taken to find a person guilty of an offence.

  (2)   If:

  (a)   a court finds a person guilty of an offence based on subsection   588GAB(1) or 588GAC(1) relating to disposition of property by a company; and

  (b)   the court is satisfied that one or more creditors of the company suffered loss or damage because of the disposition and the company's insolvency;

the court may order the person to pay the company compensation equal to the loss or damage (whether or not the court imposes a penalty for the offence).

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