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CORPORATIONS ACT 2001 - SECT 453C

Eligibility criteria for restructuring

             (1)  The eligibility criteria for restructuring are met in relation to a company if, on the day on which a restructuring practitioner for the company is appointed:

                     (a)  in a case where the regulations prescribe a test for eligibility based on the liabilities of the company--that test is satisfied; and

                     (b)  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 that day;

                            has been a director of another company that has been under 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); and

                     (c)  the company has not been under 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).

             (2)  The regulations may prescribe:

                     (a)  tests for eligibility based on the liabilities of companies for the purposes of paragraph (1)(a); and

                     (b)  circumstances in which the directors of companies are exempt from the requirement in paragraph (1)(b); and

                     (c)  circumstances in which companies are exempt from the requirement in paragraph (1)(c).



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