Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 588FO

Scope

  (1)   This section applies if either of the following PPSA security interests is vested in a company under section   588FL:

  (a)   a PPSA security interest of a consignor under a commercial consignment;

  (b)   a PPSA security interest of a lessor or bailor under a PPS lease.

Entitlement to damages and compensation

  (2)   The consignor, lessor or bailor:

  (a)   is taken to have suffered damage immediately before the PPSA security interest was vested in the company; and

  (b)   may recover an amount of compensation from the company equal to the greater of the following amounts:

  (i)   the amount determined in accordance with the consignment, lease or bailment;

  (ii)   the sum of the market value of the consigned, leased or bailed property immediately before the critical time that applies under section   588FL, and the amount of any other damage or loss resulting from the termination of the consignment, lease or bailment.

Note:   The consignor, lessor or bailor may be able to prove the amount of compensation in proceedings related to the winding up of the company.