Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p19
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 19/60)
Character Range: 230037–233070

that; and
 (c) if the restructuring practitioner does not believe on reasonable grounds a matter mentioned in paragraph (a) or (b)—identify the matter in relation to which a belief on reasonable grounds could not be formed and set out the reasons for that conclusion; and
 (d) if, at the time a person became an affected creditor, the person was a related entity of the restructuring practitioner—specify the name of the affected creditor and the nature of the relationship between the affected creditor and the restructuring practitioner.
Note: A declaration must not be false or misleading in a material particular, or omit anything that would render it materially false or misleading: see section 1308 of the Act.
 (3) The declaration must be signed by the restructuring practitioner.

Offence
 (4) The restructuring practitioner for a company commits an offence if:
 (a) the restructuring practitioner prepares a declaration under this regulation; and
 (b) the restructuring practitioner does not:
 (i) make reasonable inquiries into the company's business, property, affairs and financial circumstances; or
 (ii) take reasonable steps to verify the company's business, property, affairs and financial circumstances;
  for the purpose of assessing the accuracy and completeness of the information provided by the company in the restructuring plan and restructuring proposal statement.
Penalty: 50 penalty units.
 (5) An offence based on subregulation (4) is an offence of strict liability.

5.3B.19  Restructuring practitioner must notify company of defect in restructuring plan
 (1) The restructuring practitioner for a company under restructuring commits an offence if:
 (a) at any time before the restructuring practitioner prepares a declaration under regulation 5.3B.18 in relation to the company's restructuring plan:
 (i) the restructuring practitioner becomes aware that the information in the plan, or in the restructuring proposal statement that accompanies the plan, is incomplete or inaccurate; and
 (ii) the restructuring practitioner has reasonable grounds to believe that, if the plan is made, the matter to which the incompleteness or inaccuracy relates is likely to affect the company's ability to meet its obligations under the plan; and
 (b) the restructuring practitioner does not, as soon as practicable after becoming so aware:
 (i) notify the company of the incompleteness or inaccuracy; and
 (ii) provide an opportunity for the company to address the incompleteness or inaccuracy.
Penalty: 50 penalty units.
 (2) An offence based on subregulation (1) is an offence of strict liability.

5.3B.20  Proposal to make restructuring plan lapses
 (1) A company's proposal to make a restructuring plan lapses if:
 (a) the restructuring plan is not accepted in accordance with subregulation 5.3B.25(1); or
 (b) the company's restructuring practitioner cancels the proposal to make the plan in accordance with subregulation (2).
 (2) The restructuring practitioner for a company may cancel the company's proposal to