Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 506A

Scope

             (1)  This section applies if the liquidator of a company is required to convene a meeting under section 497.

Declaration of relevant relationships

             (2)  Before convening the meeting, the liquidator must make a declaration of relevant relationships.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

Notification of creditors

             (3)  The liquidator must:

                     (a)  give a copy of each declaration under subsection (2) to as many of the company's creditors as reasonably practicable; and

                     (b)  do so at the same time as the liquidator gives those creditors notice of the meeting.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (4)  The liquidator must table a copy of each declaration under subsection (2) at the meeting.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

Updating of declaration

             (5)  If:

                     (a)  at a particular time, the liquidator makes a declaration of relevant relationships under subsection (2) or this subsection; and

                     (b)  at a later time:

                              (i)  the declaration has become out-of-date; or

                             (ii)  the liquidator becomes aware of an error in the declaration;

the liquidator must, as soon as practicable, make a replacement declaration of relevant relationships.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (6)  The liquidator must table a copy of a replacement declaration under subsection (4):

                     (a)  if:

                              (i)  there is a committee of inspection; and

                             (ii)  the next meeting of the committee of inspection occurs before the next meeting of the company's creditors;

                            at the next meeting of the committee of inspection; or

                     (b)  in any other case--at the next meeting of the company's creditors.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

Defence

             (7)  In a prosecution for an offence constituted by a failure to include a particular matter in a declaration under this section, it is a defence if the defendant proves that:

                     (a)  the defendant made reasonable enquiries; and

                     (b)  after making these enquiries, the defendant had no reasonable grounds for believing that the matter should have been included in the declaration.