Commonwealth Numbered Acts

COMPANIES ACT 1981 No. 89 of 1981 - SECT 557

557. (1) Where a person has been convicted of an offence under sub-section 556
(1) in respect of the incurring of a debt, the Court, on the application of
the Commission or the person to whom the debt is payable, may, if it thinks it
proper to do so, declare that the first-mentioned person shall be personally
responsible without any limitation of liability for the payment to the person
to whom the debt is payable of an amount equal to the whole of the debt or
such part of it as the Court thinks proper.

(2) Where a person has been convicted of an offence under sub-section 556 (5),
the Court, on the application of the Commission or of a prescribed person,
may, if it thinks it proper to do so, declare that the first-mentioned person
shall be personally responsible without any limitation of liability for the
payment to the company of the amount required to satisfy so much of the debts
of the company as the Court thinks proper.

(3) In relation to a company in respect of which a conviction referred to in
sub-section (2) relates-

   (a)  the appropriate officer;

   (b)  a creditor or contributory of the company authorized by the Commission
        to make an application under that sub-section; and

   (c)  if the company was a company to which section 556 applied by reason of
        paragraph 553 (1) (c)-a member of the company, are prescribed persons
        for the purposes of that sub-section.

(4) Where the Court makes a declaration under sub-section (1) in relation to a
person, it may give such further directions as it thinks proper for the
purpose of giving effect to that declaration.

(5) In particular, the Court may order that the liability of the person under
the declaration shall be a charge-

   (a)  on a debt or obligation due from the company to him; or

   (b)  on a right or interest under a charge on any property of the company
        held by or vested in him or a person on his behalf, or a person
        claiming as assignee from or through the person liable or a person
        acting on his behalf.

(6) The Court may, from time to time, make such further order as it thinks
proper for the purpose of enforcing a charge imposed under sub-section (5).
(7) For the purpose of sub-section (5), ''assignee'' includes a person to whom
or in whose favour, by the directions of the person liable, the debt,
obligation or charge was created, issued or transferred or the interest
created, but does not include an assignee for valuable consideration, not
including consideration by way of marriage, given in good faith and without
actual knowledge of any of the matters upon which the conviction or
declaration was made.

(8) On the hearing of an application under sub-section (1) or (2), the
appropriate officer or other applicant may himself give evidence or call
witnesses.

(9) A reference in this section to a provision of this Act, other than a
provision of this section, shall be construed as including a reference to a
provision of a previous law of the Territory with which the first-mentioned
provision corresponds.