The new insolvency laws – what to expect in the first weeks
What will liquidators, trustees and lawyers, and the courts, immediately confront in the first weeks or so of the new law, under the changes introduced to the Bankruptcy Act and the Corporations Act commencing on 1 March 2017. See if this assists. 1. As to practitioner registration, notices to the regulators, insurance and discipline, the new law is explained below by […]
Assessing the insolvency regulators’ self-assessments – from tea and biscuits to zero tolerance
ASIC has released a report self-assessing itself, according to requirements of the Commonwealth Regulator Performance Framework: Report 511 ASIC self-assessment 2015–16. This requires all the Commonwealth regulators to report according to a series of Key Performance Indicators. It is a worthy process, though being self-assessed, its value has to be seen in that light. Insolvency […]
Chains of responsibility – Queensland’s environmental protection law – part 2
The Queensland government has on 27 January 2017 issued a guideline under its new ‘chain of responsibility’ environmental protection legislation whereby a range of persons associated with a company in breach of environmental laws can be made liable for those breaches. The guideline is issued under the Environmental Protection Act 1994 (EPA), in relation to new Division […]
Applying to be a bankruptcy trustee – part 2
The interest in this topic is such that some further issues must be explained, for the benefit of applicants and of the regulators. Can experienced insolvency lawyers be trustees? Lawyers don’t cut it when applying to be registered as trustees, even if they are experienced insolvency lawyers. This was the outcome in Moore v Inspector […]
The Culleton bankruptcy – part 3 – the appeal – decision reserved
On 27 January 2017, the Full Federal Court reserved its decision. It is to be given this week, on a date to be advised. The stay order was continued for up to 24 hours after then. —————————– The Federal Court has expedited the hearing of Mr Culleton’s bankruptcy appeal, to Friday 27 January 2017, in Perth. The […]
Insolvency Law Reform Act 2016 – more unpaid work for liquidators?
ARITA has reported that the ILRA 2016 imposes a significantly broader range of reporting obligations on liquidators than indicated in the exposure draft of the rules, which was limited to reporting on the likelihood of a dividend. ARITA likens the new requirement to a section 439A report in a voluntary administration. And it will not come […]
If there is little money in the winding up, the liquidator will have to cut corners he might not otherwise cut
Insolvency practitioners have the choice to take on a liquidation or a bankruptcy and therefore must accept that there will be occasions when they will be unremunerated for necessary work. It goes with the job. The question is to what degree. What work, if any, has to be done to prepare and lodge a section […]
The Culleton bankruptcy – part 2
In my earlier commentary, I reported that Mr Rodney Norman Culleton had been made bankrupt by the Federal Court on 23 December 2016: Balwyn Nominees v Culleton [2016] FCA 1578. Mr Culleton has now appealed from that decision, filing a notice of appeal on 11 January 2017, and he has obtained an extension of the […]
Sakr Nominees – insolvency practitioner remuneration
The recent decision of Justice Black in PrimeSpace Property [2016] NSWSC 1821 (15 December 2016) might be seen by some as a worthy draft of the reserved NSW Court of Appeal decision in Sakr Nominees, the subject of my earlier comments. Justice Black examines the various approaches taken to remuneration in the different cases, including the […]
Talk about busy…
Murrays Legal just hit 100,000 words…..
Applying to become a trustee in bankruptcy – some guidance from the case law
New rules on the application process to become a trustee in bankruptcy have applied from 1 March 2017. Briefly, they involve an applicant having accounting and commercial law qualifications, some years of experience, no serious ‘form’, experience, knowledge and ability, and otherwise being fit and proper. An interview is required, and possibly an exam. This […]
Umpteen professional bodies regulating insolvency practitioners – overkill? or a spreading of the risk?
The new regulatory regime of insolvency practitioners under the Insolvency Law Reform Act 2016 provides for co-regulation shared between the regulators – ASIC and AFSA – and a large number of professional bodies – ARITA; CPA Australia; CAANZ; the IPA; the NSW Bar Association; the Law Society of NSW; the Victorian Legal Services Commissioner; the Victorian Legal […]
So you don’t want to conduct liquidations or administrations, you just want to do receiverships?
The new insolvency law commencing 1 March 2017 allows a practitioner to be registered solely for the purpose of being appointed receiver, although the practitioner must be formally registered as a liquidator, subject to conditions. The Explanatory Memorandum to the Insolvency Law Reform Bill 2015 [9.98] explains that a practitioner “would be able to apply for […]
Red tape committee turns to alcohol, with cabotage to follow
The Senate Red Tape Committee has decided to focus itself more, by inquiring into and reporting on specific areas. Alcohol It is starting off with an inquiry into red tape in the sale, supply and taxation of alcohol. Submissions close 31 January 2017 with a report due by 14 March 2017. Further red tape issues Following inquiries […]
How the government decides on law reform …
Unlawful phoenix activity has been a subject of much consideration and recommendation over the years, with most recommendations ignored, and some perhaps properly so – a similar names law was never going to work – but most just waiting for government action. Major recommendations are imminent from the team of Melbourne academics. Getting the government to […]
Credit reporting of tax debts – one measure among many
From 1 July 2017, the Government has announced that it will allow the Australian Taxation Office (ATO) to disclose to Credit Reporting Bureaux the tax debt information of businesses that “have not effectively engaged with the ATO to manage these debts”. This was announced in the Mid-Year Economic and Fiscal Outlook (MYEFO) on 17 December […]
How or why WA forgot the existence of the Tax Acts or decided to proceed blithely in disregard of their existence
The concluding comment from the decision of the High Court in Bell Group N.V. (in liquidation) v Western Australia; W.A. Glendinning & Associates Pty Ltd v Western Australia; Maranoa Transport Pty Ltd (in liq) v Western Australia [2016] HCA 21 was to note that … “The Commissioner concludes his written submissions with the observation that […]
Regulator reports on the high standards of insolvency practitioners, but …
The final report of the year 2016 on the standards and performance of the insolvency profession is rather impressive. Our 291 personal insolvency practitioners: recovered or realized $570 million in assets during 2015-2016, of which $235 million (41%) was paid in dividends to creditors; at a cost in remuneration of $142 million (25%). Any complaints? In […]
Senate inquiry
On 29 November 2016, the Senate referred the following matters to the Economics References Committee for inquiry and report by the last sitting day of the autumn sittings of 2018. The regulatory framework for the protection of consumers, including small businesses, in the banking, insurance and financial services sector (including managed investment schemes), with particular […]
The Culleton bankruptcy
Mr Rodney Norman Culleton, a federal politician, was made bankrupt by the Federal Court on 23 December 2016: Balwyn Nominees Pty Ltd v Culleton [2016] FCA 1578. In formal words, the Judge ordered that “the estate of Rodney Norman Culleton be sequestrated under the Bankruptcy Act 1966 (Cth)”. The Judge went on to order that “there […]
Protected: A CALDB decision against a liquidator under the existing law, and how the new law will operate
There is no excerpt because this is a protected post.
The new effects test – and banks financing of distressed businesses
The government has introduced the Competition and Consumer Amendment (Misuse of Market Power) Bill 2016 into parliament which would implement the Harper recommendations on section 46, including the introduction of an ‘effects test’. The Bill has now been referred to the Senate Economics Committee for review, with submissions due by 9 January 2017. The Committee […]
Insolvency law reform – some harsh words
Murrays Legal recently reported a comment that our new insolvency law arriving in 2017 was the worst insolvency law reform we have seen. This prompts me to repeat my view that, if this is the case, it is largely the result of the unhappy domination of insolvency reform by corporate law over the years. But, perhaps contradictorally, I repeat […]
Insolvency Practice Rules 2016 released – Corporations and Bankruptcy
The Insolvency Practice Rules (Corporations) 2016 have now been released, without fanfare, and are on the Federal Register of Legislation. The Insolvency Practice Rules (Bankruptcy) 2016 have since followed. They are both here. These generally accord with the drafts released for comment. They do not appear to have taken into account the more substantial issues raised in some […]
