(1) A corporation contravenes this section if:
- (a)
- the corporation is the
holding company of a company at the time when the company incurs a debt; and
- (b)
- the company is insolvent at that time, or becomes insolvent by incurring
that debt, or by incurring at that time debts including that debt; and
- (c)
- at that time, there are reasonable grounds for suspecting that the company
is insolvent, or would so become insolvent, as the case may be; and
- (d)
- one or both of the following subparagraphs applies:
- (i)
- the corporation, or one or more of its directors, is or are aware at that
time that there are such grounds for so suspecting;
- (ii)
- having regard to the nature and extent of the corporation's control over
the company's affairs and to any other relevant circumstances, it is
reasonable to expect that:
(A) a holding company in the corporation's circumstances would be so aware; or
(B) one or more of such a holding company's directors would
be so aware; and
- (e)
- that time is at or after the
commencement of this Act.
(2) A corporation that contravenes this section is not guilty of an offence.