Corporations Act 2001

The directors of a company contravene this subsection if:

there are not reasonable grounds to believe either or both of the following:

that the company is insolvent, or is likely to become insolvent before the declaration under subparagraph 458E(1)(a)(i) expires;

that the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on the day on which notice of the declaration under subparagraph 458E(1)(a)(i) is published, or on any day afterwards on which the declaration has not expired; and

one or more of the directors becomes aware of that fact; and

the directors do not, within 5 business days after one or more of the directors becoming aware of that fact:

make a declaration in writing that the company is not eligible for temporary restructuring relief; and

publish notice of the declaration in the prescribed manner; and

give ASIC a copy of the declaration.

This subsection is a civil penalty provision (see section 1317E).

The directors of a company may:

make a declaration in writing that the company is not to be treated as eligible for temporary restructuring relief for any other reason; and

publish notice of the declaration in the prescribed manner.

If the directors of a company make a declaration under paragraph (2)(a), the directors must give ASIC a copy of the declaration within 5 business days after doing so.