Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Note: This Part does not apply to a CCIV or a sub-fund of a CCIV: see Division 4 of Part 8B.6 .

Division 2 - Restructuring  

Subdivision B - Appointment of restructuring practitioner  

SECTION 453C   ELIGIBILITY CRITERIA FOR RESTRUCTURING  

453C(1)    
The eligibility criteria for restructuring are met in relation to a company if, on the day on which a restructuring practitioner for the company is appointed:

(a)    in a case where the regulations prescribe a test for eligibility based on the liabilities of the company - that test is satisfied; and

(b)    no person who:

(i) is a director of the company; or

(ii) has been a director of the company within the 12 months immediately preceding that day;

has been a director of another company that has been under 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) ; and

(c)    the company has not been under 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) .

453C(2)    
The regulations may prescribe:

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

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

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