Document ID: chunk:federal_register_of_legislation:F2021C01163:body:0:p5
Version: federal_register_of_legislation:F2021C01163
Segment Type: other
Provision Reference: 
Character Range: 10262–12971

debts as and when they become due and payable;
(i) all directors' statements made under the former subsection 301(5) of the Law in respect of all years ending on or after 18 November 1996 contained unqualified statements that in the directors' opinion there were, when the statement was made, reasonable grounds to believe that the company would be able to pay its debts as and when they fell due;
Procedures to assess solvency
(j)  the company has had procedures in place from the commencement of the relevant financial year which enable all the directors to assess whether the company is able to pay all its debts as and when they become due and payable (including, without limiting the generality of this requirement, any debts for which the company may become liable by virtue of any deed of cross guarantee to which the company is party for the purposes of relief to its wholly-owned entities ASIC Corporations (Wholly-owned Companies) Instrument 2016/785)) and the nature and frequency of those procedures were adequate for that purpose, having regard to the business and financial circumstances of the company;
Quarterly management accounts
(k) to enable the directors to make the resolution required in paragraph (l), the directors of the company have caused management accounts covering the company to be prepared for each quarter:
           (i) within one month after the end of the quarter; or
           (ii) by a later time if ASIC has given the company written notice approving that time;
(l) within one month after the end of each quarter, or by a later time if ASIC has given the company written notice approving that time:
           (i) the directors have considered:
(A) the management accounts prepared for that quarter; and
(B) all information that has become available since the end of the quarter about the company's affairs which is material to the assessment of the management accounts for that quarter; and
           (ii) having regard to the management accounts and that information, the directors have resolved that, at the end of the quarter and at the time the resolution was made:
(A) the total liabilities of the company did not exceed 70% of total tangible assets of the company; and
(B) the company was able to pay its debts as and when they become due and payable;
(m) if the company prepared management accounts on a consolidated basis for any quarter during the relevant financial year, at the end of any such quarter and at the time a resolution is made in accordance with paragraph (l), the total consolidated liabilities did not exceed 70% of the total consolidated tangible assets;
(n) if, at the end of any quarter during the relevant financial year, the company is