Insolvency law – has corporate rescue gone too far? 30 April, Sydney Law School

The Ross Parsons Centre for Commercial, Corporate and Taxation Law of Sydney University Law School is hosting a debate on the laws of insolvency and restructuring in Australia this Wednesday, 30 April 2025, at 5.30pm. The panel will be chaired by Adjunct Professor Richard Fisher AM and comprises Mr John Martin (formerly President of the International Insolvency Institute), Ms Maria O’Brien (formerly President of the Turnaround Management Association) and (myself) Mr Michael Murray. 

Please note that the Hon Ray Finkelstein AO KC, who was originally listed to attend, is now unable to do so.

The last major review of insolvency law was the ‘Harmer Report’ of 1988 (ALRC 45) which among other reforms, led to a major refocus of corporate insolvency law towards the restructuring and rescue of struggling businesses, through the voluntary administration regime under Part 5.3A of the Corporations Act.  Professor Fisher was a Commissioner on that inquiry. 

Most recently, the July 2023 PJC Report on Corporate Insolvency has recommended another major review, of both personal insolvency under the Bankruptcy Act 1966 and of corporate insolvency under the Corporations Act.  The government has not responded to that report.

In default of any government or industry response to the threshold tasks recommended for attention by the PJC, the Ross Parsons Centre is itself seeking to determine some of those threshold tasks, for one, to reassess the aims and purposes of insolvency law, relevantly, to what extent it should assist in the rescue of businesses struggling under market forces.    

This is encapsulated under the title of whether ‘corporate rescue’ has gone too far.  If it is accepted that the law should assist, further questions might be whether the criteria by which rescue is offered should be more focused, and whether accountability and reporting as to the outcome of the rescue, including its market impact, should be imposed. That may conceivably call for a lessening of the impact of the liquidation process, and the liquidator’s role.  

Insolvency processes that may be discussed include Part 5.3A voluntary administration and Part 5.3B small corporate business restructuring, debtor in possession and pre-packs, safe harbour and insolvent trading, and the role of the ATO in the process.  

The role of the profession in this process is also relevant. 

Details of time, date and registration are at this link: Insolvency law – has corporate rescue gone too far? Tickets, Wed 30/04/2025 at 5:30 pm | Eventbrite

Michael Murray
Research Affiliate
Ross Parsons Centre for Commercial, Corporate and Taxation Law
The University of Sydney Law School
Level 4, New Law Building F10 | The University of Sydney | NSW | 2006
M +61 402 248 353
E michaelhugh.murray@sydney.edu.au

Updated 28 April 2025