Corporations Act 2001 (Cth) Section 453C ELIGIBILITY CRITERIA FOR RESTRUCTURING
To be eligible for a small business restructuring, a company must satisfy the following criteria:
- total liabilities of the company must not exceed $1 million;
- no person who is or has been a director of the company (within the 12 months before the commencement of the restructuring) has been a director of another company that has been under restructuring or subject to the simplified liquidation process within the period of the preceding seven years;
- the company must not have undergone restructuring or been the subject of a simplified liquidation process within the preceding seven years; and
- some restrictions also apply with respect to related company’s entering restructuring.
This is not the end of the story as Directors will need to ensure that they can satisfy other criteria in order to put forward a proposal to their creditors. Read more here.