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 7 - Other matters  

SECTION 458F   DIRECTORS DECLARE COMPANY NOT ELIGIBLE FOR TEMPORARY RESTRUCTURING RELIEF  

458F(1)    
The directors of a company contravene this subsection if:

(a)    there are not reasonable grounds to believe either or both of the following:

(i) that the company is insolvent, or is likely to become insolvent before the declaration under subparagraph 458E(1)(a)(i) expires;

(ii) that the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on the day on which notice of the declaration under subparagraph 458E(1)(a)(i) is published, or on any day afterwards on which the declaration has not expired; and

(b)    one or more of the directors becomes aware of that fact; and

(c)    the directors do not, within 5 business days after one or more of the directors becoming aware of that fact:

(i) make a declaration in writing that the company is not eligible for temporary restructuring relief; and

(ii) publish notice of the declaration in the prescribed manner; and

(iii) give ASIC a copy of the declaration.

Note: This subsection is a civil penalty provision (see section 1317E ).

458F(2)    
The directors of a company may:

(a)    make a declaration in writing that the company is not to be treated as eligible for temporary restructuring relief for any other reason; and

(b)    publish notice of the declaration in the prescribed manner.

458F(3)    
If the directors of a company make a declaration under paragraph (2)(a), the directors must give ASIC a copy of the declaration within 5 business days after doing so.