Section 588FA of the Corporations Act - change of wording but no change to meaning?
Hoyer, Tina (2010) Section 588FA of the Corporations Act - change of wording but no change to meaning? Insolvency Law Journal , 18 (2). pp. 77-95.
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One of the main elements to be established by a liquidator in order to successfully challenge a pre-liquidation transaction known as an unfair preference is contained in s588FA(1)(b) of the Corporations Act 2001 (Cth). This subsection provides that the transaction must result in the creditor receiving from the company more than the creditor would receive from the company if the transaction was set aside and the creditor was to prove for the debt in a winding up of the company. This wording is substantially different from that of the subsection’s statutory predecessor. It was foreshadowed that despite the differences in the wording, the enactment of s 588FA would cause no fundamental change to the law with respect to unfair preferences. However, this article will demonstrate that there have been subtle, yet significant, changes to the way the court deals with unfair preferences since the enactment of s 588FA.
|Item Type:||Article (Refereed Research - C1)|
|Keywords:||insolvency, liquidation, corporations act, Section 588FA|
|Date Deposited:||11 Apr 2011 23:02|
|FoR Codes:||18 LAW AND LEGAL STUDIES > 1801 Law > 180109 Corporations and Associations Law @ 100%|
|SEO Codes:||94 LAW, POLITICS AND COMMUNITY SERVICES > 9404 Justice and the Law > 940405 Law Reform @ 100%|