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CORPORATIONS ACT 2001 - SECT 458F

Directors declare company not eligible for temporary restructuring relief

             (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).

             (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.

             (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.



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