Corporations Act 2001
The directors of a company contravene this subsection if: (a) there are not reasonable grounds to believe either or both of the following:
(i) that the company is insolvent, or is likely to become insolvent before the declaration under subparagraph 458E(1)(a)(i) expires;
(b) one or more of the directors becomes aware of that fact; and (c) the directors do not, within 5 business days after one or more of the directors becoming aware of that fact:
(ii) that the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on the day on which notice of the declaration under subparagraph 458E(1)(a)(i) is published, or on any day afterwards on which the declaration has not expired; and
(i) make a declaration in writing that the company is not eligible for temporary restructuring relief; and
(ii) publish notice of the declaration in the prescribed manner; and
(iii) give ASIC a copy of the declaration.
Note: This subsection is a civil penalty provision (see section 1317E ).458F(2)
The directors of a company may: (a) make a declaration in writing that the company is not to be treated as eligible for temporary restructuring relief for any other reason; and (b) publish notice of the declaration in the prescribed manner. 458F(3)
If the directors of a company make a declaration under paragraph (2)(a), the directors must give ASIC a copy of the declaration within 5 business days after doing so.
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