Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For the purposes of paragraph 500AC(1)(b) of the Act, a prescribed circumstance is that the liquidator believes on reasonable grounds that:
(a) the company, or a director of the company, has engaged in conduct; and
(b) the conduct involved fraud or dishonesty; and
(c) the conduct has had, or is likely to have, a material adverse effect on the interests of the creditors as a whole or of a class of creditors as a whole.
(2) The liquidator is taken to have ceased to follow the simplified liquidation process on the day on which the liquidator first held the belief.