Composition or arrangement
(1) Where a bankrupt desires to make a proposal to his or her creditors for: (a) a composition in satisfaction of his or her debts; or (b) a scheme of arrangement of his or her affairs; he or she may lodge with the trustee a proposal in writing signed by him or her setting out the terms of the proposed composition or scheme of arrangement and particulars of any sureties or securities forming part of the proposal. (1A) The trustee must, within 2 business days after receiving the proposal, give a copy of the proposal to the Official Receiver. Penalty: 5 penalty units. Note: See also section 277B (about infringement notices). (1C) Subsection (1A) is an offence of strict liability. Note: For strict liability, see section 6.1 of the Criminal Code.
Sourced from the Federal Register of Legislation at 26 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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