Who should pay for the costs of the administration of an insolvency?

A debtor in Australia pays no fee to have themselves made voluntarily bankrupt. If that does not seem odd, then it should be further explained that we are one of the only jurisdictions to impose no fee. But the ‘fee’ to wind up the debtor’s company can be a few thousand dollars. Individual debtors In […]

Crime and insolvency, Australian style

There is not much correlation between crime and insolvency, in my researches, certainly in comparison with crime in the world of solvent individuals and companies. But when a bankruptcy or liquidation does reveal criminal conduct, Australian law’s reporting requirements are variable. Australian Criminal Investigations Commission Despite my researches, the Australian Criminal Investigations Commission has expressed […]

Some thinking about insolvency pre-packs, panels and more

In a newspaper article of 20 April 2020* promoting a new ‘restructuring business’, some ‘new thinking’ is offered on changes needed to meet what is said to be an expected ‘insolvency deluge’. The thinking, in relation to pre-packaged insolvencies and an insolvency panel, is not new but it usefully adds to the list of reforms […]

Lost in my translation – correction to bankruptcy trustee remuneration statistics

AFSA has properly drawn to my attention that figures I have given about the remuneration of bankruptcy trustees have not been correct, or correctly explained from its figures. This seeks to redress and correct that. As AFSA explains, its Report, Registered trustee remuneration in the personal insolvency system, did not say, as I have recounted, […]

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 […]

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 – […]

What has happened to the proposed beneficial ownership of shares register?

A review of the ASIC Annual Report 2018 by a parliamentary committee was tabled only in February 2020. The report has a section headed:  ‘What has happened to the beneficial ownership of shares register?’ The committee asked ASIC for its view regarding the establishment of a beneficial ownership register, as the report says, ‘to make […]

Three year ‘imprisonment’ for bankruptcy debt

Australia has historically been seen as severe in its approach to unpaid debt and opposition to changing the 3 year period of time before bankruptcy discharge indicates that this sentiment is still strong; unless there are other agenda$ at play. As an example, the colony of Victoria was one of the last jurisdictions in the […]

Don’t be too harsh on non-compliant directors of failed companies?

The laws regulating the conduct of directors of companies in liquidation and laws regulating persons who go bankrupt exist in two different universes, consistent with the relative influence of the stakeholders behind each. Past reform ideas to lessen time and expense in liquidations, and address phoenix activity, were rejected by directors as being ‘unjustifiably harsh’. […]