Explain whether the corporations act enables the liquidator


Problem: Not long ago, Johnson Manufacturers Pty Ltd was wound up in insolvency on the application of one of its major unpaid suppliers. While the company's liquidator was examining the company's inadequate financial records, he noticed that seven months before its liquidation the managing director of the company deposited company funds into his sister's bank account. She then used the money to buy herself a penthouse apartment in the city.

Explain whether the Corporations Act enables the liquidator of the Johnson manufacturers Pty Ltd to recover any money from the managing director or his sister in the above circumstances.

Provide your answer in 400-500 words.

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Other Subject: Explain whether the corporations act enables the liquidator
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