The restrictions on Small Business Restructuring (SBR): an eligibility guide

Directors restricted to one SBR every 7 years

As most advisors would now be aware, the Small Business Restructuring (SBR) process is not available to all companies and there are certain eligibility criteria which must be met.

In addition to having liabilities of less than $1M, having employee entitlements up to date and tax lodgements also up to date, there is a restriction on directors who have used the SBR process or undertaken a simplified liquidation already.

In this regard, a company is not eligible to commence the SBR process if directors have also been a director of a company that has been under restructuring (or subject of a simplified liquidation) in the past 7 years. Former directors who resigned in the previous 12 months, are also factored into this restriction.