(1) For the purposes of this Part, a body corporate becomes insolvent at a particular time if, and only if, at that time:

(aa)

an administrator of the body corporate is appointed under section 436A, 436B or 436C; or

(a)

the body corporate commences to be wound up or ceases to carry on business; or

(b)

a receiver, or a receiver and manager, of property of the body corporate is appointed, whether by a court or otherwise; or

(c)

the body corporate enters into a compromise or arrangement with its creditors or a class of them.

(3) For the purposes of this Part, 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, as the case may be, 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 .

(4) A reference in subsection (3) 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.