95A
In forceMeaning of solvent and insolvent
Volume 1Chapter 1, Part 1.1 to Chapter 2J, Part 2J.4 sections 1 to 260E
Chapter 1Introductory
Part 1.2Interpretation
Division 7Meaning of some other expressions
95A Meaning of solvent and insolvent
(1)
A person is solvent if, and only if, the person is able to pay all the person’s debts, as and when they become due and payable.
(2)
A person who is not solvent is insolvent.
Note:
A company is taken to be insolvent if the company proposes a restructuring plan to creditors (see subsection 455A(2)).
This Act’s bill:Explanatory memorandumSecond reading speech
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