Eligibility criteria for restructuring
453C Eligibility criteria for restructuring
The eligibility criteria for restructuring are met in relation to a company if, on the day on which a restructuring practitioner for the company is appointed:
in a case where the regulations prescribe a test for eligibility based on the liabilities of the company—that test is satisfied; and
no person who:
is a director of the company; or
has been a director of the company within the 12 months immediately preceding that day;
has been a director of another company that has been under restructuring or been the subject of a simplified liquidation process within a period prescribed by the regulations, unless exempt under regulations made for the purposes of subsection (2); and
the company has not been under restructuring or been the subject of a simplified liquidation process within a period prescribed by the regulations, unless exempt under regulations made for the purposes of subsection (2).
tests for eligibility based on the liabilities of companies for the purposes of paragraph (1)(a); and
circumstances in which the directors of companies are exempt from the requirement in paragraph (1)(b); and
circumstances in which companies are exempt from the requirement in paragraph (1)(c).
This provision refers to the regulations (the regulations
, prescribed by the regulations
, The regulations may prescribe
). Made under this Act:
- Corporations Regulations 2001 · under s 1364
85 more instruments made under this Act are listed on the Act’s overview.
This Act’s bill:Explanatory memorandumSecond reading speech
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