For the purposes of this Part, a Part 5.7 body is taken to be unable to
pay its debts if:
- (a)
- a creditor, by assignment or otherwise, to whom the
Part 5.7 body is indebted in a sum exceeding the statutory minimum then
due has served on the Part 5.7 body, by leaving at its principal place of
business in this jurisdiction or by delivering to the secretary or a director
or executive officer of the Part 5.7 body or by otherwise serving in such
manner as the Court approves or directs, a demand, signed by or on behalf of
the creditor, requiring the body to pay the sum so due and the body has, for 3
weeks after the service of the demand, failed to pay the sum or to secure or
compound for it to the satisfaction of the creditor; or
- (b)
- an action or other proceeding has been instituted against any member for
any debt or demand due or claimed to be due from the Part 5.7 body or
from the member as such and, notice in writing of the institution of the
action or proceeding having been served on the body by leaving it at its
principal place of business in this jurisdiction or by delivering it to the
secretary or a director or executive officer of the Part 5.7 body or by
otherwise serving it in such manner as the Court approves or directs, the
Part 5.7 body has not, within 10 days after service of the notice, paid,
secured or compounded for the debt or demand or procured the action or
proceeding to be stayed or indemnified the defendant to his, her or its
reasonable satisfaction against the action or proceeding and against all
costs, damages and expenses to be incurred by him, her or it by reason of the
action or proceeding; or
- (c)
- execution or other process issued on a judgment, decree or order obtained
in a court (whether an Australian court or not) in favour of a creditor
against the Part 5.7 body or a member of the Part 5.7 body as such,
or a person authorised to be sued as nominal defendant on behalf of the
Part 5.7 body, is returned unsatisfied; or
- (d)
- it is otherwise proved to the satisfaction of the Court that the
Part 5.7 body is unable to pay its debts.