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ARTICLE · 09 NOVEMBER 2014

Liquidators examining pre-examination steps

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Examinations under sections 596A and 596B of the Corporations Act 2001 (Cth) are important for liquidators.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Georgina King
Georgina King
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IN BRIEF

Examinations under sections 596A and 596B of the Corporations Act 2001 (Cth) are an important method for liquidators to assess the prospects of success and basis for bringing court proceedings as part of the liquidation. However, given the cost and time involved in conducting an examination, it is often prudent to consider whether other steps such as issuing letters of demand and even serving a Statement of Claim with a view to possible settlement of a claim, can and should be taken before proceeding with an examination. This in turn raises the issue of when taking such steps could leave a subsequent examination summons open to challenge on the basis that the liquidator already knows enough about the case and therefore the examination is not being conducted for a proper purpose.

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