---
title: "Small business restructuring eligibility record"
url: "https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/restructuring-eligibility-record"
type: "precedent"
site: "AI Law Framework"
id: "a8-restructuring-eligibility-record"
area_id: "A8"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A8-L20261018-3", "A8-T1-R2"]
law_stated_as_at: "2026-10-22"
---

# 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.

Canonical page: https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/restructuring-eligibility-record  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy.md)
- Jurisdictions: Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 2 authorities it cites, for Commonwealth.

## 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](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/advise-directors-on-entering-small-business-restructuring.md)
- [Prepare appointment papers for administration, liquidation or receivership](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/prepare-appointment-papers-for-administration-liquidation-or-receivershi.md)

## 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.

## Authorities

- [Corporations Act 2001 (Cth) s 453C](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s453c.html)
- [ASIC, Small business restructuring and the restructuring plan](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/small-business-restructuring-and-the-restructuring-plan)

## Official form

[Official form](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/small-business-restructuring-and-the-restructuring-plan)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/restructuring-eligibility-record and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*