Liquidator’s rights to company’s books

Offence title:

Liquidator’s rights to company’s books

Act:

530B Corporations Act

Offence:

(1)   When a liquidator requires the books of a company a person is not entitled to

(a)   retain them: or

(b)    enforce a lien over them;

such a lien is not otherwise prejudiced.

(2)   (1)(a) does not apply to a secured creditor of the company who is entitled to possession, otherwise then because of a lien, however, the liquidator is entitled to inspect them and make copies at any reasonable time.

(3)   A person must not engage in conduct that hinders or obstructs a liquidator.

(3A) (3) does not apply to a person if the person is entitled, as against the company and liquidator, to retain the books.

(4)   The liquidator may give a written notice requiring delivery to the liquidator books specified in the notice that are in the person’s possession.

(5)   The notice in (4) must specify the notice is to be complied with, within 3 days.

(6)   A person must comply with a notice under subsection (4).

(6A) Subsection (6) does not apply to the extent that the person is entitled, as against the company and the liquidator, to retain possession of the books.

Penalty:

(3)   1 year imprisonment.

(6)   120 penalty units

Summary/Indictable/mixed:

Summary

Jurisdiction:

Local Court

How committed:

(3)   A managing director hides the books of the company from the liquidator.

(6)    A managing director receives a written notice to produce books to the liquidator but refuses to do so.

Important note:

(7)   In this section: liquidator includes a provisional liquidator.