Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The directors of a company contravene this subsection if:
(a) there are not reasonable grounds to believe either or both of the following:
(i) that the company is insolvent, or is likely to become insolvent before the declaration under subparagraph 458E(1)(a)(i) expires;
(ii) that the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on the day on which notice of the declaration under subparagraph 458E(1)(a)(i) is published, or on any day afterwards on which the declaration has not expired; and
(b) one or more of the directors becomes aware of that fact; and
(c) the directors do not, within 5 business days after one or more of the directors becoming aware of that fact:
(i) make a declaration in writing that the company is not eligible for temporary restructuring relief; and
(ii) publish notice of the declaration in the prescribed manner; and
(iii) give ASIC a copy of the declaration.
Note: This subsection is a civil penalty provision (see section 1317E).
(2) The directors of a company may:
(a) make a declaration in writing that the company is not to be treated as eligible for temporary restructuring relief for any other reason; and
(b) publish notice of the declaration in the prescribed manner.
(3) If the directors of a company make a declaration under paragraph (2)(a), the directors must give ASIC a copy of the declaration within 5 business days after doing so.