Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.5 - VOLUNTARY WINDING UP  

Division 2 - Simplified liquidation process  

Subdivision C - Ceasing of simplified liquidation process  

REGULATION 5.5.07   LIQUIDATOR MUST CEASE TO FOLLOW THE SIMPLIFIED LIQUIDATION PROCESS  

5.5.07(1)    
For the purposes of paragraph 500AC(1)(b) of the Act, a prescribed circumstance is that the liquidator believes on reasonable grounds that:

(a)    the company, or a director of the company, has engaged in conduct; and

(b)    the conduct involved fraud or dishonesty; and

(c)    the conduct has had, or is likely to have, a material adverse effect on the interests of the creditors as a whole or of a class of creditors as a whole.

5.5.07(2)    
The liquidator is taken to have ceased to follow the simplified liquidation process on the day on which the liquidator first held the belief.