The recent insolvency reforms are likely to have
wide-ranging consequences, the full extent of which we will only
learn about as cases are decided by the courts. Previously, we have
covered some of the risks and issues that companies and directors
may face when availing with the debt restructuring process. We have
also separately covered risks that may arise for creditors when
their debtors undergo debt restructuring or the simplified
liquidation process.
In this article, we consider some of the unintended consequences
that the insolvency reforms may have in relation to various
licensing laws that have financial requirements that must be met as
a condition of that licence.
By way of example, the amendments made to the Corporations
Act 2001 (Cth) will interact with numerous other pieces of
legislation, such as the
Queensland Building and Construction Commission Act 1991
(Qld) ("QBCC Act") which either ban
or suspend licences of individuals who were involved with
