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ARTICLE · 21 NOVEMBER 2007

Insolvency Law Shake Up

Moore Australia
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Not since the Harmer Report in 1988 has Australian Insolvency Law come under such close scrutiny and review. Extended dialogue between various stakeholder groups has lead to the introduction into parliament of the Corporations Amendments (Insolvency) Act 2007, which seeks to greatly influence procedures for failed companies.

AustraliaInsolvency/Bankruptcy/Re-Structuring
David Mansfield
David Mansfield
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Not since the Harmer Report in 1988 has Australian Insolvency Law come under such close scrutiny and review. Extended dialogue between various stakeholder groups has lead to the introduction into parliament of the Corporations Amendments (Insolvency) Act 2007, which seeks to greatly influence procedures for failed companies.

The new legislation targets, amongst other things, practitioner independence and corporate misconduct by company officers. Other areas upon which the reforms have been focused include the streamlining of the Voluntary Administration process and improving results for creditors.

The reforms are extensive and seek to take advantage of opportunities identified by stakeholders since the previous round of insolvency law reform. Some of the changes focus on the following:

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