Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 5.3B.18

  (1)   As soon as practicable after a company executes a restructuring plan, the company's restructuring practitioner must make a declaration in accordance with this regulation.

  (2)   The declaration must:

  (a)   if the restructuring practitioner believes on reasonable grounds that:

  (i)   the eligibility criteria for restructuring are met in relation to the company; and

  (ii)   if the restructuring plan is made, the company is likely to be able to discharge the obligations created by the plan as and when they become due and payable;

    state that; and

  (b)   if the restructuring practitioner believes on reasonable grounds that all information required to be set out in the company's restructuring proposal statement has been set out in that statement--state 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.