Reform of insolvency communications by email, and beyond

Corporate insolvency law in Australia concerning communications with creditors needs modernising, and well beyond what is available in 2020.  When early cars, then termed locomotives, were first allowed on the road England’s ‘Red Flag Act’ of 1865 required a man with a red flag to walk ‘60 yards’ ahead to alert ‘the Riders and Drivers […]

ARITA’s ‘bushfire and COVID-19’ request to government for funding

ARITA – the main Australian industry body representing insolvency practitioners and lawyers – has asked the government[1] for funding to enable it to address various issues in corporate insolvency highlighted by the current crisis. ARITA raises aspects of long held concerns[2] of myself and Professor Jason Harris which we raised again this week, our views […]

Managing the insolvency curve – a new government role is needed?

There is expected to be a wave of businesses and individuals going into liquidation or bankruptcy despite the huge financial measures being taken by the government. These insolvencies will occur despite the recent measures limiting the rights of creditors to bring insolvency proceedings, and despite the additional safe harbour protection from insolvent trading for company […]

Just when we have some creditor activism in insolvencies …

Will the current extreme crisis we confront finally stir insolvency creditor activism, but in the wrong way? or further dampen it? Just as the drum continued to be beaten on the problem of creditor disengagement in insolvencies and an article appears offering glimmers of creditor activism arising, the government has responded to the extreme economic […]

Changes to Australia’s insolvency laws – some different perspectives

The recent changes to Australia’s insolvency laws are being well explained by the experts. These are some comments from me both on the changes and on some gaps. The changes to Australia’s insolvency laws are well explained elsewhere – the extended declarations of intention; the new $20,000 threshold for bankruptcy petitions; and $20,000 thresholds for […]

How to best handle a major airline collapse

When a government sets up an inquiry into how to deal with the insolvency of a certain industry, the industry and those involved in it might become a little nervous. Airline Insolvency Review, March 2019 A Review Report commissioned by the UK government into the processes available to deal with the insolvency of airlines was […]

Australia’s inconsistent tax and insolvency laws

Recent research has revealed that although the Australian Taxation Office (ATO) lost its priority in insolvencies in 1993, and was relegated to a pari passu standing along with other creditors, it has gradually regained that priority in other ad hoc ways with little coherent policy. A redrafting of s 555 of the Corporations Act, which […]

The proportion of insolvency practitioners who are women

Around the time of International Women’s Day and more generally there is often discussion about the low proportion of women registered as liquidators or trustees in Australia – under 10%. Any assessment of why that is the case needs input from other disciplines depending on the depth of inquiry but an analysis at a professional […]

New UK Insolvency Code of Ethics

A new version of the Insolvency Code of Ethics will apply from 1 May 2020 to all insolvency practitioners in the UK. In its reliance on ‘disclosure and consent’ as a way of managing a conflict, it may differ from code guidance in Australia.   ————- It follows a 2017 consultation saying that the Code […]

A regulator’s report on insolvency practitioner remuneration

Australia’s bankruptcy trustees receive an average of $4,800 in administering each estate, with 63% of estates paying no remuneration at all – the government has this work done for free. These figures come from a report of the bankruptcy regulator – Registered Trustee Remuneration in the Personal Insolvency System – Best practice report 2020 – […]