High Court Confirms: No Statutory Set-Off Against Unfair Preference Recoveries

Drazen Kozaric of McCarthy Durie Law summarises a recent case where the High Court confirmed that creditors cannot rely on statutory set-off under Corporations Act 2001 (Cth) s 553C to reduce or defeat a liquidator’s unfair preference recovery under s 588FF, because such claims arise only on liquidation for the benefit of all creditors and therefore lack the mutuality required for set-off.

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