The high cost of ASIC’s regulation of liquidators, in a deregulatory environment

The proposed annual ASIC ‘industry levies’ imposed on liquidators in Australia, to fund the cost of their regulation, prompts this brief comparison with what Australian bankruptcy trustees pay, and insolvency practitioners in the UK and New Zealand.  This coincides with the Prime Minister’s push for greater deregulation. ASIC and liquidators Australia’s corporate regulator, ASIC, has […]

Objections to a bankrupt’s 3 year discharge in Australia

Apart from Australian law imposing a long period for a person to be subject to the restrictions and stigma of bankruptcy, of 3 years, it allows trustees to extend that period of time, up to 8 years, and based on some rather mixed messages and perhaps unfair law. Draft only, open for comment Objections to […]

Assigning bankruptcy claims to a former trustee

A 5 day bankruptcy hearing was cancelled in March 2021, in relation to matters occurring in 2012, being challenged in a 2014 bankruptcy by way of recovery actions being brought in 2019. This cancellation followed the suspension in February 2021 by AFSA of the registration of the trustee litigant in the action, in relation to […]

Winding up Forum Finance

In ordering that liquidators be appointed to Forum Finance Pty Ltd on 9 July 2021, the Federal Court explained the nature of a winding up on the just and equitable ground, and its history. Westpac had applied for the appointment of provisional liquidators both on the ground of insolvency, under Part 5.4 of the Corporations […]

Insolvency practitioner charge-out rates – the cost of carrying the State

In making a winding up order against Forum Finance,[1] Justice Michael Lee made this comment about the hourly fees of the proposed liquidators: “24    … The prevailing rate for partners of insolvency firms doing this work has reached a stage (one might be forgiven to think somewhat remarkably) where a practitioner can charge $847 (inclusive of GST) in […]

Employees’ redundancy rights on the insolvency of their employer

There are now a number of decisions from the Administrative Appeals Tribunal reviewing decisions of the Fair Entitlements Guarantee where the question is whether an employee whose employment was terminated as a result of the business going into liquidation is entitled to a redundancy payment from FEG. Unless the right to redundancy is contained in […]

Cross-border insolvency protection of a ship on its way to Australia

An Italian shipping company – Michele Bottiglieri Armatore SpA – which is subject to Italian restructuring protection, a concordato preventivo – has successfully obtained a stay in Australia against the arrest by a creditor of one of its vessels – MBA Giovanni – which is due to arrive in Australia imminently, if it hasn’t already.  […]