Advise directors on entering small business restructuring
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the company's balance sheet, creditor list, tax and employee records and the directors' histories, complete a checklist of the eligibility conditions as at the proposed appointment day, including total liabilities and any director link to another company recently in restructuring or simplified liquidation, and draft the advice to the directors.
- What the lawyer must review
- Decide whether the company is eligible on the appointment day, explain to the directors what entering external administration means for them and the company, including control of the business and the public register notation, and settle the advice and the next steps with the restructuring practitioner.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the company's balance sheet, creditor list, tax and employee records and the directors' histories, complete a checklist of the eligibility conditions as at the proposed appointment day, including total liabilities and any director link to another company recently in restructuring or simplified liquidation, and draft the advice to the directors. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm the instructions, the jurisdiction and the complete relevant material before starting.
- Check total liabilities as at the proposed appointment day against the limit, including contingent debts.
- Check every director's other directorships for a restructuring or simplified liquidation in the restricted period.
- Confirm employee entitlements are identified, because ASIC's guidance treats them differently from other debts.
- Check the output against the source documents named in it before it is relied on.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Small business restructuring eligibility record | Checklist | AI use Yellow | Record of the section 453C tests and the appointment limits ASIC describes, before directors appoint a restructuring practitioner. |
| Restructuring proposal period diary | Checklist | AI use Yellow | Diary of the proposal and acceptance periods ASIC states for a small business restructuring, after the practitioner is appointed. |
| Restructuring creditor classification sheet | Form | AI use Yellow | Sheet for sorting creditors of a company in small business restructuring into affected creditors, excluded creditors and admissible debts, as ASIC describes those terms. |
Signed-in accounts can read the full text of each one. All precedents.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.