(1) A body corporate becomes insolvent at a particular time if, and only if, at that time:
(a) an administrator of the body corporate is appointed under section 436A, 436B or 436C; or
(b) the body corporate commences to be wound up or ceases to carry on business; or
(c) a receiver, or a receiver and manager, of property of the body corporate is appointed, whether by a court or otherwise; or
(d) the body corporate enters into a compromise or arrangement with its creditors or a class of them.
(2) A natural person becomes insolvent at a particular time if, and only if, at that time:
(a) a creditor's petition or a debtor's petition is presented under Division 2 or 3 of Part IV of the Bankruptcy Act 1966 against:
(i) the person; or
(ii) a partnership in which the person is a partner; or
(iii) 2 or more joint debtors who include the person; or
(b) the person's property becomes subject to control under Division 2 of Part X of the Bankruptcy Act 1966 ; or
(c) the person executes a deed of assignment or deed of arrangement under Part X of the Bankruptcy Act 1966 ; or
(d) the person's creditors accept a composition under Part X of the Bankruptcy Act 1966 .
(3) A reference in subregulation (2) to a Division or Part of the Bankruptcy Act 1966 includes a reference to provisions of a law of an external Territory, or a country other than Australia or an external Territory, that correspond to that Division or Part.