Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p14
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 14/60)
Character Range: 216820–219548

an administrator of the company is appointed under section 436A, 436B or 436C of the Act; or
 (g) a liquidator or provisional liquidator of the company is appointed; or
 (j) the company makes a restructuring plan.
 (2) The directors of a company under restructuring:
 (a) may make a declaration in writing that the restructuring of the company is to end on a specified day for any reason; and
 (b) must give a copy of the declaration to:
 (i) the company's restructuring practitioner; and
 (ii) the company's creditors;
  before the day specified in the declaration.

5.3B.03  Eligibility criteria for restructuring
 (1) For the purposes of paragraph 453C(1)(a) of the Act, the test for eligibility is that on the day the restructuring begins the total liabilities of the company to pay any admissible debts and claims must not exceed $1 million.
 (2) For the purposes of paragraph 453C(1)(b) of the Act, a period of 7 years is prescribed.
 (3) For the purposes of paragraph 453C(1)(c) of the Act, a period of 7 years is prescribed.
 (4) For the purposes of paragraph 453C(2)(b) of the Act, a prescribed circumstance is that:
 (a) the other company is a related body corporate of the company in relation to which the eligibility criteria are to be met; and
 (b) the other company is, or has been:
 (i) under restructuring; or
 (ii) the subject of a simplified liquidation process; and
 (c) if subparagraph (b)(i) applies—the restructuring practitioner for the other company was appointed no more than 20 business days before the day on which the restructuring of the company in relation to which the eligibility criteria are to be met began; and
 (d) if subparagraph (b)(ii) applies—the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the restructuring of the company in relation to which the eligibility criteria are to be met began.

5.3B.04  Transactions or dealings in the ordinary course of business
 (1) For the purposes of subsection 453L(4) of the Act, this regulation prescribes the circumstances in which entering into a transaction or dealing by a company is to not be treated as in the ordinary course of the company's business.
 (2) The circumstances are as follows:
 (a) the transaction or dealing is for the purposes of satisfying an admissible debt or claim;
 (b) the transaction or dealing relates to the transfer or sale of the whole or a part of the business;
 (c) the transaction or dealing relates to the payment of a dividend.

5.3B.05  Consent to transactions or dealings outside the ordinary course of business
 (1) This regulation applies if the restructuring practitioner for a company under restructuring consents to a transaction