Australian insolvency law – current reforms

As in many countries, general elections put law changes and reform on hold pending the new government’s decisions on pending law. The government was returned in Australia at the recent May election and this is a convenient time to review where Australian insolvency law reform is at the moment, or as much can be anticipated. […]

“Shortcomings of the Model Law on Cross-Border Insolvency (just some)”

Professor Martin Davies of Tulane Maritime Law Center recently offered a critique of the Model Law on Cross Border Insolvency at a presentation at Sydney University Law School. As he said: “shortcomings of the Model Law (just some)”. Limitation on recognition of foreign judgments An early problem with the Model Law on Cross-Border Insolvency was […]

Insolvency of trading trusts – Keay comments

Our 10th edition of Keay’s Insolvency was published in 2018 just after the Victorian Court of Appeal decision in Amerind, and that decision was included in our detailed analysis of the issues involved. We explain the High Court appeal decision, with more commentary to be issued in forthcoming draft updates to Keay.  The High Court […]

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 […]

Unclaimed bankruptcy moneys – new law

Easier processes to recover unclaimed moneys in bankruptcy commence at the end of June 2019. The Official Receiver in Bankruptcy will be able to decide upon such claims, in the same way that ASIC has done for some years. See Unclaimed moneys. A right of review to the Court will be provided. The law at […]

Bills subject to scrutiny

That a bill is introduced into parliament after an extensive period of community consultation does not necessarily mean that it will proceed into law without further scrutiny, and even further public input. This scrutiny is decided by the selection of bills committee of the Senate. That committee has decided that the provisions of various bills […]

Director identity number bill now before parliament

A number of bills broadly concerning the registers of information held by the Commonwealth have been referred to the Senate Standing Committee on Economics for review.[1] The Committee is due to report by 26 March 2019. One – the Commonwealth Registers Bill 2019 – would introduce a director identity number – DIN. This idea, simple […]

Litigation ‘for the benefit of creditors’ – really?

How much do unsecured creditors receive out of a liquidation or bankruptcy from any ‘successful’ judgment obtained by the liquidator or trustee under their vast range of recovery remedies – strong remedies that are not available to any other litigant? Less than 5c in the dollar? We could find out. This question has been unasked […]

Hayne Report – banks and receivers and agricultural enterprises

The Hayne Royal Commission declined to examine the conduct of receivers appointed by banks, in particular over agricultural enterprises. Nevertheless, comments and recommendations in the Final Report[1] (Report) address concerns about how banks have handled non-financial farming enterprises. National farm debt mediation The Report for one thing recommends a national farm debt mediation scheme, which […]

Bad timing? or will Euclid save the day?

Calculation of time limits in law should be straightforward but judges have taken us to the mathematics of Euclid and beyond in deciding whether a bankruptcy can take place at a point in time of a day before the first instant of that day. Time limits are important in law because a person with claims […]