How section 563B of the Corporations Act is enlivened.
When a liquidator can pay a 100-cents-in-the-dollar dividend to
unsecured creditors, those creditors are also entitled to being
paid interest on their debts from the date of the company's
winding up to the date of the final dividend payment.
But this wasn't always the case. Previously only creditors
that had interest-bearing debts (or judgment) were entitled to
claim and be paid interest. The interest rate that applied was
determined in the original contract between the creditor and the
company, or the interest rate set out in the judgment.
This position however was amended by section 563B of the
Corporations Act 2001 which simply states as follows.
