BANKRUPTCY ACT 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 2 - REGISTERING AND DISCIPLINING PRACTITIONERS  

Division 35 - Notice requirements  

SECTION 35-1   NOTICE OF SIGNIFICANT EVENTS  

Registered trustee must lodge notice

35-1(1)  
A registered trustee must lodge with the Inspector-General a notice, in the approved form, if any of the following events occur:


(a) the trustee becomes an insolvent under administration;


(b) a bankruptcy notice is issued under this Act in relation to the trustee as debtor, or a corresponding notice is issued in relation to the trustee as debtor under a law of an external Territory or a law of a foreign country;


(c) the trustee is convicted of an offence involving fraud or dishonesty;


(d) the trustee is disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001 , or under a law of an external Territory or a law of a foreign country;


(e) the trustee ceases to have:


(i) adequate and appropriate professional indemnity insurance; or

(ii) adequate and appropriate fidelity insurance;

against the liabilities that the trustee may incur working as a registered trustee;


(f) the trustee is issued with a notice under section 40-40 of Schedule 2 to the Corporations Act 2001 (a show-cause notice) in relation to the trustee ' s registration as a liquidator under that Act;


(g) the trustee ' s registration as a liquidator under the Corporations Act 2001 is suspended or cancelled;


(h) any other event prescribed.

The notice must be lodged within 5 business days after the registered trustee could reasonably be expected to be aware that the event has occurred.

Offence

35-1(2)  
A person commits an offence if:


(a) the person is subject to a requirement under subsection (1); and


(b) the person intentionally or recklessly fails to comply with the requirement.

Penalty: 100 penalty units.




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