Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 922

922. (1) For the purposes of this Part, a corporation becomes insolvent at a
particular time if, and only if, at that time:

   (a)  the corporation commences to be wound up, comes under official
        management or ceases to carry on business;

   (b)  a receiver, or a receiver and manager, of property of the corporation
        is appointed, whether by a court or otherwise; or

   (c)  the corporation enters into a compromise or arrangement with its
        creditors.

(2) For the purposes of this Part, a body corporate other than a corporation
becomes insolvent at a particular time if, and only if, at that time, the
body:

   (a)  commences to be wound up on the ground that it cannot pay its debts;

   (b)  comes under official management; or

   (c)  enters into a compromise or arrangement with its creditors.

(3) For the purposes of this Part, a natural person becomes insolvent at a
particular time if, and only if, at that time:

   (a)  a creditor's petition or a debtor's petition is presented under
        Division 2 or 3, as the case may be, of Part IV of the
        Bankruptcy Act 1966 against:

        (i)    the person;

        (ii)   a partnership in which the person is a partner; or

        (iii)  2 or more joint debtors who include the person;

   (b)  the person's property becomes subject to control under Division 2 of
        Part X of the Bankruptcy Act 1966;

   (c)  the person executes a deed of assignment or deed of arrangement under
        Part X of the Bankruptcy Act 1966; or

   (d)  the person's creditors accept a composition under Part X of the
        Bankruptcy Act 1966.

(4) A reference in subsection (3) to a Division or Part of the Bankruptcy  Act
1966 includes a reference to provisions of a law of an external Territory, or
a country other than Australia or an external Territory, that correspond to
that Division or Part.