Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.5.02

Meaning of becoming insolvent

             (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.



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