Corporations Act 2001

CHAPTER 1 - INTRODUCTORY  

PART 1.2 - INTERPRETATION  

Division 7 - Meaning of some other expressions  

SECTION 95A   MEANING OF SOLVENT AND INSOLVENT  

95A(1)    
A person is solvent if, and only if, the person is able to pay all the person's debts, as and when they become due and payable.

95A(2)    
A person who is not solvent is insolvent.

Note: A company is taken to be insolvent if the company proposes a restructuring plan to creditors (see subsection 455A(2) ).