I've played systems like this, but only one club demands a rebid of one diamond. In this situation,the opener will bid one of a four card major, or 1NT, or pass the 1 diamond bid with four diamonds. This is still too high opposite a bust hand, but no worse that a "weak NT" opposite a bust.

One diamond can be passed by a bust hand, because the bust bid would be 1NT (leaving the majors open for "natural" bids). The ABCL frowns on bidding systems where the "bust" bid is higher than the one suit rank above the opening bid (2 clubs, 2 diamonds is okay, 2 clubs, 2NT (bust) is frowned upon), because it takes up bidding space.

Besides, your team has left more room for the opponents to overcall following the approach I outlined.

I've played systems like this, but only One Club demands a rebid of one diamond. In this situation,the opener will bid one of a four card major, or 1NT, or pass the 1 diamond bid with four diamonds. This is still too high opposite a bust hand, but no worse that a "weak NT" opposite a bust.

One diamond can be passed by a bust hand, because the bust bid would be 1NT (leaving the majors open for "natural" bids). The ABCL frowns on bidding systems where the "bust" bid is higher than the one suit rank above the opening bid (2 clubs, 2 diamonds is okay, 2 clubs, 2NT (bust) is frowned upon), because it takes up bidding space.

Besides, your team has left more room for the opponents to overcall following the approach I outlined.