Corporations Act 2001
Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 5 of Part 8B.6 .
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Hide history noteThe 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) .
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