Our ’21st century’ corporate insolvency courts have reintroduced a 19th century rule requiring liquidators and others to place notices in ‘daily newspapers’ which ‘circulate’, and more.
2017
In 2017, the ‘superior’ federal and state courts have or are reintroducing the need for the publication of various corporate insolvency events, such as the winding up of a company
“in a daily newspaper circulating generally in the State or Territory where the [company etc] has its principal, or last known, place of business”.
A “copy of the published matter” – the newspaper – must be annexed or exhibited to an affidavit.
See the various Courts’ Corporations Rules.
1899
According to “The Insolvency Law of Victoria, An exposition of the law and practice relating to insolvency and deeds of arrangement in the colony of Victoria, including the Insolvency Act 1890, the Insolvency Act 1897, the Insolvency Act 1898, the Rules of the Supreme Court 1884 (Insolvency) etc etc”, 1899, by WH Lewis, numerous company and bankruptcy advertisements had to be placed both
“in a Melbourne newspaper and in a newspaper circulating in the locality of the debtor”.
And a copy of those newspapers
“shall be left with the Chief Clerk by the person inserting the advertisement”
and the Chief Clerk
“shall file the same with the proceedings in the application matter or proceedings”.
2017
There are many important things to consider in improving the legal system in the 21st century, this sort of thing is not one of them.
Instead, see my comments on the Productivity Commission’s recent report – Shifting the Dial – as being a valiant attempt to move Australia out of the comfort zones of many assumptions about what can and can’t be done in commerce, law and society generally; and my comments on China’s new on-line bankruptcy system.
Postscript
If it is necessary to advertise a liquidator’s appointment, why do the courts not require the advertisement of a bankruptcy trustee’s appointment? In fact bankruptcy law dispensed with the need for newspaper advertisements long ago, last century in fact.
Once again, corporate insolvency continues to languish.
