CORPORATIONS ACT 2001 - SECT 500AA Eligibility criteria for the simplified liquidation process

CORPORATIONS ACT 2001 - SECT 500AA

  (1)   The eligibility criteria for the simplified liquidation process are met in relation to a company if:

  (a)   a triggering event occurs in relation to the company; and

  (b)   subsection   497(4) (report on company's business affairs etc.) and section   498 (declaration of eligibility for simplified liquidation process) have been complied with, or are taken to have been complied with, in relation to the company; and

  (c)   the company will not be able to pay its debts in full within a period not exceeding 12 months after the day on which the triggering event occurs; and

  (d)   if the regulations prescribe a test for eligibility based on the liabilities of the company--that test is satisfied on the day on which the triggering event occurs; and

  (e)   no person who:

  (i)   is a director of the company; or

  (ii)   has been a director of the company within the 12 months immediately preceding the day on which the triggering event occurs;

    has been a director of another company that has undergone restructuring or been the subject of a simplified liquidation process within a period prescribed by the regulations, unless exempt under regulations made for the purposes of subsection   (2) of this section; and

  (f)   the company has not undergone restructuring or been the subject of a simplified liquidation process within a period prescribed by the regulations, unless exempt under regulations made for the purposes of subsection   (2) of this section; and

  (g)   if the company is required by a taxation law (within the meaning of the Income Tax Assessment Act 1997 ) to give a return, notice, statement, application or other document before the day the liquidator is appointed--the company has substantially complied with that requirement.

  (2)   The regulations may prescribe:

  (a)   tests for eligibility based on the liabilities of companies for the purposes of paragraph   (1)(d); and

  (b)   circumstances in which the directors of companies are exempt from the requirement in paragraph   (1)(e); and

  (c)   circumstances in which companies are exempt from the requirement in paragraph   (1)(f).