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Home/Legislation/Corporations Act 2001/95A

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Corporations Act 2001

95AMeaning of solvent and insolvent

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#### 95A Meaning of solvent and insolvent (1) A person is solvent if, and only if, the person is able to pay all the person’s debts, as and when they become due and payable. (2) A person who is not solvent is insolvent. > Note: A company is taken to be insolvent if the company proposes a restructuring plan to creditors (see subsection 455A(2)).

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Section 95A - Corporations Act 2001 - Meaning of solvent and insolvent — Zoe