122ACBecoming insolvent

##### 122AC Becoming insolvent (1) For the purposes of this Part, a body corporate becomes insolvent at a particular time if, and only if, at that time: (a) the body corporate commences to be wound up, comes under official management or ceases to carry on business; (b) a receiver, or a receiver and manager, of property of the body corporate is appointed, whether by a court or otherwise; or (c) the body corporate enters into a compromise or arrangement with its creditors. (2) For the purposes of this Part, a natural person becomes insolvent at a particular time if, and only if, at that time: (a) a creditor’s petition or a debtor’s petition is presented under Division 2 or 3, as the case may be, of Part IV of the Bankruptcy Act 1966 against: (i) the person; (ii) a partnership in which the person is a partner; or (iii) 2 or more joint debtors who include the person; (b) the person’s property becomes subject to control under Division 2 of Part X of the Bankruptcy Act 1966; (c) the person executes a deed of assignment or deed of arrangement under Part X of the Bankruptcy Act 1966; or (d) the person’s creditors accept a composition under Part X of the Bankruptcy Act 1966. (3) A reference in subsection (2) to a Division or Part of the Bankruptcy Act 1966 includes a reference to provisions of a law of an external Territory, or a country other than Australia or an external Territory, that correspond with that Division or Part.