New Zealand – the outlier of international insolvency regulation
Australia and other countries will be relieved that New Zealand is again looking at licensing and regulating its insolvency practitioners. From a cross-border perspective, this relief is in light of the fact that an unqualified NZ liquidator has the right to pursue cross-border insolvency investigations, conduct examinations and take court proceedings in Australia without the […]
A silver lining in the insolvency law reform delay
The unfortunate delay in the commencement of the substance of the insolvency law reforms for one year, to 1 September 2017, and the reasons given for this may in fact reveal a silver lining, an opportunity to bring insolvency processes on-line and into the 21st century. The government has acceded to the need for practitioners […]
The right to vote out under-performers – liquidators, politicians and ICAC
Insolvency practitioners are to be the subject to the same tenure arrangements as federal politicians, with creditors being able to vote out “underperforming practitioners”, but, unlike federal politicians, practitioners are also to be subject to ICAC type oversight. Minister Kelly O’Dwyer, in referring to the Insolvency Law Reform Act 2016, says that creditors’ right to remove […]
Latest Supreme Court Views on Liquidators’ Remuneration
A NSW Supreme Court judge has spoken about “liquidators’ preference for time-based remuneration, and courts’ scepticism of it” at a major conference of senior judges and lawyers in Sydney last week. Justice Ashley Black presented his paper at the Conference on Corporations Law held by the Federal Court of Australia and the Law Council. Federal Court Judges and senior […]
Insolvency reforms further delayed
The Australian government has decided that insolvency practitioners need more time to implement long awaited law reforms aimed at improving practitioners’ reporting and accountability, enhancing their efficiency, improving their communications and increasing competition between them. The commencement of many of the reforms under the Insolvency Law Reform Act 2016 (ILRA), which became law on 29 February 2016, are being […]
Liquidators’ remuneration further explained …
Obviously with an eye on the ‘controversy’ over how to assess liquidator’s remuneration, at least in NSW, Justice Robb of that Supreme Court has given a judgment that seeks to explain the place that using a percentage of asset realizations has in determining a liquidator’s remuneration. At the same time the Judge raised another issue, said to be […]
Director identity numbers, and their frequent flyer equivalents
Among all the numerous recommendations the government has received about corporate insolvency reform, one has now been made three times – the need for a director identity number, a DIN. The need for that needs to be highlighted as one answer to the control of illegal phoenix activity. However recent media and other comment about […]
ASIC’s database, the Productivity Commission and Phoenix misconduct
Three stars have aligned this August – the Productivity Commission’s inquiry into data usage, the government’s pending decision on how to make more money out of ASIC’s corporate data, and ASIC’s and the ATO’s media campaigns against unlawful phoenix activity – conveniently now prompting this focus on the various connections between them. One reason the […]
Misprision revived – accountants’ new legal obligations – APESB
Accountants are taking on an obligation to refer breaches of the law to the authorities, under changes to their international code of ethics, reviving an obligation assessed and addressed by the law some time ago. Professional ‘accountants’ are bound by the International Code of Ethics for Professional Accountants, maintained by IESBA. The obligation to respond to ‘non-compliance […]
A lack of trust in the law of trusts
Joint liquidators had to apply to the court be appointed as receivers and managers of property held by them as bare trustee because of uncertainty in the law as to their powers. The company had never traded in its own right, its only activity having been to act as trustee and to carry on the […]
Singapore’s new debt restructuring regime – the steak knives are out
Competition between courts and the legal regimes in which they operate is perhaps an odd concept, contrary to the image of the strict independence and objectivity expected of our judicial system and its officers. It does exist, at various levels, and is perhaps reinforced by individuals’ inherent competitiveness for territory and status. The apocryphal […]
The Fishman’s non-payment of tax was not dishonest
The Fish Man Ltd was in liquidation. Its director, Mr Hadfield, raised and sold ornamental fish from 14 fish tanks at his home. But one day he cut his finger and, for a time, could not work. Sadly, this ultimately led to the Fish Man not being able to meet its PAYE and GST liabilities, and going […]
Gift cards, and Christmas hampers
A report has just been issued in the UK by the Law Commission on the question of whether there should be greater protection for consumers who lose deposits or gift vouchers when retailers or other service providers go into insolvency. Dick Smith Electronics This mirrors a Senate Committee inquiry in Australia into gift vouchers […]
Concerns about liquidator misconduct hearings – no lawyer’s quibble
Concerns about the new processes to review the professional conduct of liquidators, and bankruptcy trustees, are discussed in light of the litigation approach taken by ASIC in a recent hearing before the existing disciplinary board. There has been limited debate about the forthcoming new processes under the Corporations Act for the review of the […]
