Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.5 - VOLUNTARY WINDING UP  

Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 5 of Part 8B.6 .

Division 3 - Creditors ' voluntary winding up  

Subdivision B - Simplified liquidation process for creditors ' voluntary winding up of an insolvent company  

SECTION 500AA   ELIGIBILITY CRITERIA FOR THE SIMPLIFIED LIQUIDATION PROCESS  

500AA(1)    
The eligibility criteria for the simplified liquidation process are met in relation to a company if:

(a)    a triggering event occurs in relation to the company; and

(b)    subsection 497(4) (report on company ' s business affairs etc.) and section 498 (declaration of eligibility for simplified liquidation process) have been complied with, or are taken to have been complied with, in relation to the company; and

(c)    the company will not be able to pay its debts in full within a period not exceeding 12 months after the day on which the triggering event occurs; and

(d)    if the regulations prescribe a test for eligibility based on the liabilities of the company - that test is satisfied on the day on which the triggering event occurs; and

(e)    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 the day on which the triggering event occurs;

has been a director of another company that has undergone 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) of this section; and

(f)    the company has not undergone 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) of this section; and

(g)    

if the company is required by a taxation law (within the meaning of the Income Tax Assessment Act 1997 ) to give a return, notice, statement, application or other document before the day the liquidator is appointed - the company has substantially complied with that requirement.

500AA(2)    
The regulations may prescribe:

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

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

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