ASIC’s liquidator regulation activities – 2017-2018

Under s 136(1)(ca) of the ASIC Act, ASIC is required to report in its annual report on its activities under Chapter 5 and Schedule 2 of the Corporations Act, and the exercise of its information gathering powers, among other activities. Although not designated under s 136, here are some insolvency comments and figures from ASIC’s […]

Litigation funding – ASIC’s submission to the ALRC

ASIC’s submission[1] to the Australian Law Reform Commission on class actions and litigation funding seemed to be a surprise to some.[2]  ASIC says that, consistent with other jurisdictions, litigation funding should be regulated as a legal service, under the control of the courts, rather than as a financial service, regulated by ASIC or other appropriate […]

NSW Registered Clubs – insolvency law change required

Registered clubs all over the country get into financial trouble, sometimes requiring the formal insolvency processes under the Corporations Act to secure their position, and potential recovery, and often urgently. Only in NSW is there a barrier to promptly accessing those processes. A recent article by Nicola Cosgrove and David Turner has repeated earlier calls […]

Too poor to be made bankrupt?

Most bankruptcies pay nothing to unsecured creditors. But there are only limited circumstances where a debtor can resist bankruptcy by claiming that they have nothing. Creditors that do petition the court to make a person bankrupt may often have some particular focus on assets transferred or undisclosed; but even then, that creditor has to share […]

‘Employee’ claim rejected – he was a contractor, and a de facto director

A ‘employee’s’ claim for payment of unpaid wages by a company in liquidation was rejected by the department under the Fair Entitlements Guarantee Act 2012 (the FEG Act). The FEG Act provides financial assistance for employees who have not been fully paid for work done for a company to which a liquidator is appointed. Directors of […]

Guardianship and bankruptcy – NSW law reform report misses the point?

A father who suffered a debilitating stroke left his son with the legal difficulty, in a quagmire of state and federal laws, of trying to deal with his father’s insolvency arising from his large accumulated debts. The father suffered a significant cognitive impairment, with no mental capacity to decide to make the legal and financial […]

Amerind – special leave granted

The story goes that a Supreme or Federal Court that convenes a larger bench than usual to hear a matter of importance is like a red rag to a bull when it comes to the High Court deciding whether the grant special leave to appeal from that decision. Whether that be the case or not, […]

One year bankruptcy and other changes – updated and corrected

[commentary of 10 August 2018 corrected and updated as at 14 August 2018]. With parliament having resumed on Monday 13 August, we may see the debate on the one-year bankruptcy bill,[1] although not, it seems, the debt agreement bill.[2] While that Bill was listed for debate on the evening of 13 August, it was not […]