Commonwealth Consolidated Acts

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When holding company liable

             (1)  A corporation contravenes this section if:

                     (a)  the corporation is the holding company of a company at the time when the company incurs a debt; and

                     (b)  the company is insolvent at that time, or becomes insolvent by incurring that debt, or by incurring at that time debts including that debt; and

                     (c)  at that time, there are reasonable grounds for suspecting that the company is insolvent, or would so become insolvent, as the case may be; and

                     (d)  one or both of the following subparagraphs applies:

                              (i)  the corporation, or one or more of its directors, is or are aware at that time that there are such grounds for so suspecting;

                             (ii)  having regard to the nature and extent of the corporation's control over the company's affairs and to any other relevant circumstances, it is reasonable to expect that:

                                        (A)  a holding company in the corporation's circumstances would be so aware; or

                                        (B)  one or more of such a holding company's directors would be so aware; and

                     (e)  that time is at or after the commencement of this Act.

             (2)  A corporation that contravenes this section is not guilty of an offence.

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