Commonwealth Numbered Acts

EXPORT MARKET DEVELOPMENT GRANTS LEGISLATION AMENDMENT ACT 1993 No. 108 of 1993 - SECT 9

9. After section 11U of the Principal Act the following sections are inserted:
Expenditure incurred while body corporate under insolvency administration

"11UA.(1) Subject to subsection (3), expenditure that a body corporate incurs
while it is under insolvency administration is non-claimable expenditure.

"(2) Subject to subsection (3), expenditure that a partnership incurs while a
body corporate that is a member of the partnership is under insolvency
administration is non-claimable expenditure.

"(3) Subsection (1) or (2) does not apply to make expenditure non-claimable
for the purposes of a claim the Commission receives that includes, or is
accompanied by, a certificate:

   (a)  given by the administering authority in relation to the body corporate
        referred to in that subsection, or by a registered liquidator; and

   (b)  stating that the body corporate was solvent when the expenditure was
        incurred. Note: Whether the expenditure is claimable in these
        circumstances depends on Division 2.

"(4) A person must not, knowingly or recklessly, give a certificate under
subsection (3) stating that a body corporate was solvent when expenditure was
incurred if the body corporate was not, in fact, solvent at that time.
Penalty: Imprisonment for 2 years.

"(5) A body corporate is under insolvency administration if, and only if, it
is in a situation described in column 1 of the table below. The administering
authority for a body corporate that is under insolvency administration is as
set out in column 2 of the table. Column 1 Situation of body corporate
Column 2
Administering authority Part 1 under the Corporations Law of a State or
internal Territory: D the body corporate is being wound up
D the liquidator or provisional liquidator of the body corporate D there is a
receiver, receiver and manager, or other controller, of property of the body
corporate who has functions or powers in connection with managing the body
corporate
D the receiver, receiver and manager, or other controller,
of property of the body corporate D the body corporate is under administration
or official management
D the administrator, or the official manager, of the body corporate D the body
corporate has executed a deed of company arrangement that has not yet
terminated
D the administrator of the deed of company arrangement D the body corporate
has entered into a compromise or arrangement with another person and the
administration of the compromise or arrangement has not been concluded
D the administrator (if any) of the compromise or arrangement Part 2 under the
law of an external Territory or a foreign country: D a body corporate is in a
situation of a kind set out in Part 1 of this Column
D the person holding, under the law of the external
Territory or foreign country, a position
equivalent to that of the person who would be the administering
authority for a body corporate in the situation set out in
Part 1 of Column 1

"(6) In subsection (5), a reference to the Corporations Law of a State or
internal Territory includes a reference to a corresponding previous law,
within the meaning of that Corporations Law, in relation to that Corporations
Law.

"(7) In this section:
'registered liquidator' means a person registered as a liquidator under
subsection 1282(2), or taken to be registered as a liquidator under Part 9.2,
of the Corporations Law of a State or internal Territory;
'solvent', in relation to a body corporate, means that the body corporate is
able to pay all its debts as and when they become due and payable. Expenditure
incurred while individual under insolvency administration

"11UB.(1) Expenditure that an individual incurs while he or she is under
insolvency administration is non-claimable expenditure.

"(2) Expenditure that a body corporate incurs while an individual who is a
director of the body corporate is under insolvency administration is
non-claimable expenditure.

"(3) Expenditure that a partnership incurs:

   (a)  while an individual who is a member of the partnership is under
        insolvency administration; or

   (b)  while an individual who is a director of a body corporate that is a
        member of the partnership is under insolvency administration; is
        non-claimable expenditure.

"(4) An individual is under insolvency administration if, and only if:

   (a)  the individual is in any of the following situations under the
        Bankruptcy Act 1966:

        (i)    the individual is a bankrupt in respect of a bankruptcy from
               which he or she has not been discharged;

        (ii)   property of the individual is subject to control under section
               50 or 188 of that Act;

        (iii)  the individual has, in the previous 3 years, executed a deed of
               assignment or deed of arrangement under Part X of that Act;

        (iv)   creditors of the individual have, in the previous 3 years,
               accepted a composition under Part X of that Act; or

   (b)  the individual is in a situation of a kind referred to in paragraph
        (a) under the law of an external Territory or a foreign country.".