Revised insolvency standard for practitioners. As to their professional bodies …

The Accounting Ethical and Professional Standards Board (APESB) has approved a new and revised APES 330 – Insolvency Services, the first revision since 2014. This standard must be complied with by accountant members of CAANZ, CPA and IPA who provide insolvency services. It covers practitioner issues of independence, remuneration, inducements and so on. It does […]

Insolvency returns to creditors and other fictions

Insolvencies average dividend returns to unsecured creditors of under 5 cents in the dollar, in some cases, under 1 cent.  For your unpaid debt of $10,000, you may receive $100, some months or years later. Much of insolvency is based on fiction.    I’d like to think that those in my field are familiar with […]

Insolvency Law Bulletin

The latest Insolvency Law Bulletin will be out shortly, covering a range of current cases and issues in both personal and corporate insolvency.  The ‘reviewing liquidator’ was a novel introduction into the law, one of many introduced by the Insolvency Law Reform Act 2016. We look at this in the context of remuneration reviews, noting […]

Managing government contracts through financial distress – AGS Commercial Notes, November 2018

This Australian Government Solicitor bulletin offers a comprehensive coverage of the terms of commercial agreements with the Australian government and how government clients and their lawyers should safeguard against the risks of the counter party facing financial distress or collapse.  Apart from discussing a range of contract terms, including the taking of security, the guidance […]

Bankruptcy in Canada in the 1930s

Articles on this website generally attract reduced readership if they are about bankruptcy rather than liquidation; or if they are about overseas law rather than local; or if they go into history, rather than the present. This article covers all three – nevertheless an interesting paper[1] on the history of Canadian bankruptcy law in the […]

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 […]

The elephant in the room of SMEs

It now seems that an old elephant in the room – about the misconduct of banks and financial institutions – has been revealed by the Hayne Royal Commission. Bleak as my comment may be, I suspect that if a Hayne were to inquire into many areas of business in Australia he would find the same […]

UK Crown priority in insolvencies to be restored

The UK government has announced in its 2018 budget that priority dividend payments will be made to the revenue for certain unpaid taxes of a company in insolvency – including VAT and PAYE. This will apply from 6 April 2020. The announcement rather cutely states that these taxes “do not always get paid if the […]

Law reform obituary – CAMAC 1983-2018

The Corporations and Markets Advisory Committee (CAMAC) was a corporate law reform body comprised of individuals eminent in that field.  It was created in 1983 and belatedly abolished in 2018,[1] although it had not operated since 2014.  The reasons for its abolition were to do with ‘smaller government’. Professor Ian Ramsay, a former long-term member […]

Voluntary administrations and the benefits, or otherwise, of board turnover

Research just published[1] has looked at the relation between board turnover and the likelihood that a company that enters a deed of company arrangement under Part 5.3A of the Corporations Act produces a better outcome for creditors than a liquidation. Controversially, the research questions the long-held view that voluntary administration (VA) under Part 5.3A is […]