Corporations Regulations 2001

As soon as practicable after a company executes a restructuring plan, the company’s restructuring practitioner must make a declaration in accordance with this regulation.

The declaration must:

if the restructuring practitioner believes on reasonable grounds that:

the eligibility criteria for restructuring are met in relation to the company; and

if the restructuring plan is made, the company is likely to be able to discharge the obligations created by the plan as and when they become due and payable;

if the restructuring practitioner believes on reasonable grounds that all information required to be set out in the company’s restructuring proposal statement has been set out in that statement—state that; and

if the restructuring practitioner does not believe on reasonable grounds a matter mentioned in paragraph (a) or (b)—identify the matter in relation to which a belief on reasonable grounds could not be formed and set out the reasons for that conclusion; and

if, at the time a person became an affected creditor, the person was a related entity of the restructuring practitioner—specify the name of the affected creditor and the nature of the relationship between the affected creditor and the restructuring practitioner.

A declaration must not be false or misleading in a material particular, or omit anything that would render it materially false or misleading: see section 1308 of the Act.

The declaration must be signed by the restructuring practitioner.

The restructuring practitioner for a company commits an offence if:

the restructuring practitioner prepares a declaration under this regulation; and

the restructuring practitioner does not:

make reasonable inquiries into the company’s business, property, affairs and financial circumstances; or

take reasonable steps to verify the company’s business, property, affairs and financial circumstances;

An offence based on subregulation (4) is an offence of strict liability.