Section 500AD — Corporations Act 2001 (Cth)

Working out whether the 25% in value of creditors test met

For the purposes of paragraph 500A(2)(c):

(a) the value of the creditors at a particular time is to be worked out by reference to the value of the creditors’ claims against the company that are known at that time; and

(b) the regulations may prescribe creditors that are, or are not, to be taken into account.

Sourced from the Federal Register of Legislation at 17 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.

Related sections

s 500AA — Eligibility criteria for the simplified liquidation process
s 500AB — Creditors may request liquidator not to follow the simplified liquidation process
s 500AC — Liquidator must cease to follow the simplified liquidation process
s 500AE — Simplified liquidation process
s 501 — Distribution of property of company
s 506 — Powers and duties of liquidator

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