Restructuring practitioner must notify company of defect in restructuring plan
5.3B.19 Restructuring practitioner must notify company of defect in restructuring plan
The restructuring practitioner for a company under restructuring commits an offence if:
at any time before the restructuring practitioner prepares a declaration under regulation 5.3B.18 in relation to the company’s restructuring plan:
the restructuring practitioner becomes aware that the information in the plan, or in the restructuring proposal statement that accompanies the plan, is incomplete or inaccurate; and
the restructuring practitioner has reasonable grounds to believe that, if the plan is made, the matter to which the incompleteness or inaccuracy relates is likely to affect the company’s ability to meet its obligations under the plan; and
the restructuring practitioner does not, as soon as practicable after becoming so aware:
notify the company of the incompleteness or inaccuracy; and
provide an opportunity for the company to address the incompleteness or inaccuracy.
Penalty: 50 penalty units.
An offence based on subregulation (1) is an offence of strict liability.
This Act’s bill:Explanatory statement
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