Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.5 - VOLUNTARY WINDING UP  

Division 2 - Simplified liquidation process  

Subdivision A - Preliminary  

REGULATION 5.5.03   ELIGIBILITY CRITERIA FOR SIMPLIFIED LIQUIDATION PROCESS  

5.5.03(1)    
For the purposes of paragraph 500AA(1)(d) of the Act, the test for eligibility is that the total liabilities of the company on the day on which the triggering event occurred must not exceed $1 million.

5.5.03(2)    
For the purposes of paragraph 500AA(1)(e) of the Act, a period of 7 years is prescribed.

5.5.03(3)    
For the purposes of paragraph 500AA(1)(f) of the Act, a period of 7 years is prescribed.

5.5.03(4)    
For the purposes of paragraph 500AA(2)(b) of the Act, a prescribed circumstance is that:

(a)    the other company is a related body corporate of the company in relation to which the eligibility criteria are to be met; and

(b)    the other company is, or has been:

(i) under restructuring; or

(ii) the subject of a simplified liquidation process; and

(c)    if subparagraph (b)(i) applies - the restructuring practitioner for the other company was appointed no more than 20 business days before the day on which the company in relation to which the eligibility criteria are to be met began to follow the simplified liquidation process; and

(d)    if subparagraph (b)(ii) applies - the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the company in relation to which the eligibility criteria are to be met began to follow the simplified liquidation process.

5.5.03(5)    
For the purposes of paragraph 500AA(2)(c) of the Act, a prescribed circumstance is that:

(a)    the company has been under restructuring; and

(b)    the restructuring terminated no more than 20 business days before the day on which the company began to follow the simplified liquidation process.

5.5.03(6)    
(Repealed by FRLI No F2023L01458, Sch 1 [ 82] (effective 1 November 2023).)