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Johnson Manufactures 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 Johnson Manufactures Pty Ltd deposited company funds into his sister?s bank account. She then used the money to buy herself penthouse apartment in the city.
Explain whether the Corporation Act enables the liquidator of Johnson Manufactures Pty Ltd to recover any money from the managing director or his sister in the above circumstances.
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