Don’t let it define you, or, maybe do.

AUSTRAC has recently defined Restructuring in the context of “assisting a person to plan or execute, or otherwise acting on behalf of a person in, the creation or restructuring of a body corporate or legal arrangement”, part of the Tranche 2 reforms.

Restructuring refers to changing the legal form of the body corporate or legal arrangement. This includes altering the legal structure of a body corporate or legal arrangement through a merger or demerger.

Restructuring doesn’t extend to aspects of the body corporate or legal arrangement that are unrelated to its legal form, such as its: 

• -organisational staffing profile

• IT systems

• debt restructuring for small businesses under the Corporations Act 2001. 

This is welcome clarity for the restructuring profession as I pointed out 9 months ago restructuring could have meant anything in the absence of some guidance.

Fingers crossed that guidance on formal appointments will also be provided soon with only a few months remaining before firms need to register with AUSTRAC.