Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 5.3B.56

Director to notify restructuring practitioner

  (1)   If a director of a company that has made a restructuring plan becomes aware that:

  (a)   there has been a contravention of the plan by a person bound by the plan (who may be the director); or

  (b)   there is likely to be a contravention of the plan by a person bound by the plan (who may be the director);

the director must, within 2 business days after the day on which the director becomes aware of the contravention or likely contravention, give written notice of the contravention or likely contravention to the restructuring practitioner for the plan.

Note:   Failure to comply with this subregulation is an offence: see subsection   1311(1) of the Act.

Restructuring practitioner to notify company's creditors

  (2)   If the restructuring practitioner for a restructuring plan receives notice under subregulation (1), or otherwise becomes aware, that:

  (a)   there has been a contravention of the plan by a person bound by the plan (who may be the restructuring practitioner); or

  (b)   there is likely to be a contravention of the plan by a person bound by the plan (who may be the restructuring practitioner);

the restructuring practitioner must, within 2 business days after the day on which the restructuring practitioner receives the notice or becomes so aware:

  (c)   lodge with ASIC notice in the prescribed form (if any) of the contravention or likely contravention; and

  (d)   give a copy of the notice to as many of the company's creditors as reasonably practicable.

Note:   Failure to comply with this subregulation is an offence: see subsection   1311(1) of the Act.