Corporations Act 2001

The eligibility criteria for the simplified liquidation process are met in relation to a company if:

a triggering event occurs in relation to the company; and

subsection 497(4) (report on company’s business affairs etc.) and section 498 (declaration of eligibility for simplified liquidation process) have been complied with, or are taken to have been complied with, in relation to the company; and

the company will not be able to pay its debts in full within a period not exceeding 12 months after the day on which the triggering event occurs; and

if the regulations prescribe a test for eligibility based on the liabilities of the company—that test is satisfied on the day on which the triggering event occurs; and

no person who:

is a director of the company; or

has been a director of the company within the 12 months immediately preceding the day on which the triggering event occurs;

the company has not undergone 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) of this section; and

if the company is required by a taxation law (within the meaning of the Income Tax Assessment Act 1997) to give a return, notice, statement, application or other document before the day the liquidator is appointed—the company has substantially complied with that requirement.

The regulations may prescribe:

tests for eligibility based on the liabilities of companies for the purposes of paragraph (1)(d); and

circumstances in which the directors of companies are exempt from the requirement in paragraph (1)(e); and

circumstances in which companies are exempt from the requirement in paragraph (1)(f).