Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 1 - Preliminary  

REGULATION 7.5.02   MEANING OF BECOMING INSOLVENT  

7.5.02(1)   [ Body corporate]  

A body corporate becomes insolvent at a particular time if, and only if, at that time:

(a) an administrator of the body corporate is appointed under section 436A , 436B or 436C ; or

(b) the body corporate commences to be wound up or ceases to carry on business; or

(c) a receiver, or a receiver and manager, of property of the body corporate is appointed, whether by a court or otherwise; or

(d) the body corporate enters into a compromise or arrangement with its creditors or a class of them.

7.5.02(2)   [ Natural person]  

A natural person becomes insolvent at a particular time if, and only if, at that time:

(a) a creditor's petition or a debtor's petition is presented under Division 2 or 3 of Part IV of the Bankruptcy Act 1966 against:

(i) the person; or

(ii) a partnership in which the person is a partner; or

(iii) 2 or more joint debtors who include the person; or

(b) the person's property becomes subject to control under Division 2 of Part X of the Bankruptcy Act 1966 ; or

(c) the person executes a deed of assignment or deed of arrangement under Part X of the Bankruptcy Act 1966 ; or

(d) the person's creditors accept a composition under Part X of the Bankruptcy Act 1966 .

7.5.02(3)   [ References to Bankruptcy Act 1966]  

A reference in subregulation (2) to a Division or Part of the Bankruptcy Act 1966 includes a reference to provisions of a law of an external Territory, or a country other than Australia or an external Territory, that correspond to that Division or Part.