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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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