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CORPORATIONS ACT 2001 - SECT 458G

Court order that company not eligible for temporary restructuring relief

  (1)   The Court may order that a company is not eligible for temporary restructuring relief if there are not reasonable grounds to believe any of the following:

  (a)   the company is insolvent, or is likely to become insolvent before the declaration under paragraph   458E(1)(a) expires;

  (b)   the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on any day after notice of the declaration made under subparagraph   458E(1)(a)(i) is published on which the declaration has not expired;

  (c)   the company has taken all reasonable steps to appoint a restructuring practitioner;

  (d)   the company will take all reasonable steps to appoint a restructuring practitioner before the expiry of the declaration made by the company under subsection   458E(1).

  (2)   The Court may make an order under subsection   (1):

  (a)   on the application of:

  (i)   a creditor of the company; or

  (ii)   ASIC; or

  (b)   on the Court's own initiative.

  (3)   If the Court makes an order in relation to a company under subsection   (1), the directors of the company must within 5 business days after the order is made:

  (a)   publish notice of the order in the prescribed manner; and

  (b)   give ASIC a copy of the order.

Note:   Failure to comply with this subsection is an offence (see subsection   1311(1)).

  (4)   Nothing in this section limits the power of the Court to make an order that a company is not eligible for temporary restructuring relief for any other reason.


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