Checklist · Insolvency, Restructuring & Bankruptcy
Small business restructuring eligibility record
Record of the section 453C tests and the appointment limits ASIC describes, before directors appoint a restructuring practitioner. It is not the appointment.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- Commonwealth
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 2 authorities it cites, for Commonwealth.
- Version
- 1
- Source
- Written for this library
When to use it
Use when advising directors whether a company can enter small business restructuring, on the day a restructuring practitioner would be appointed.
Used for these tasks
- Advise directors on entering small business restructuring
- Prepare appointment papers for administration, liquidation or receivership
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
The tool lists director names and dates from an ASIC extract the lawyer supplies, and the lawyer decides whether the eligibility criteria are met.
AI may
- List current and former directors, and appointment dates, from an extract the lawyer supplies.
- Add the liability total the lawyer has taken from the accounts, without classifying a debt.
AI must not
- Do not say the company is eligible.
- Do not draft the directors' resolution or the instrument of appointment.
- Do not state the insolvency opinion. That opinion is the directors'.
The lawyer checks
- Section 453C sends the liabilities test, the period and the exemptions to the regulations. The figures below are as ASIC states them. Read the current regulation.
- ASIC says a plan cannot be proposed unless employee entitlements that are due and payable have been paid, and tax documents required by taxation laws have been given. Tax debts themselves need not be paid.
- Only a registered liquidator can act as restructuring practitioner.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
Read the full text
The full text is available after you log in. It is free. When you log in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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All precedents for Insolvency, Restructuring & Bankruptcy · Tasks and AI use in this area