Parliamentary Joint Committee inquiry into the effectiveness of Australia’s corporate insolvency laws
This inquiry announced on 28 September 2022 does not seem to have a clear genesis.?
It is not the inquiry foreshadowed by the Insolvency Law Reform Act 2016, to be conducted by AGD/AFSA and Treasury/ASIC 5 years are that law’s commencement, that is, in 2022. ?
Nor is it the 'holistic' review sought by ARITA, in its terms, and others, given that personal insolvency is not included.?
Nor is it a post COVID review of insolvency law and small business, which group provides by far the bulk of insolvencies.?
Nor is it a preliminary systems review, recommended by Professor Harris and myself, though it combines both systemic issues - for example the role of the government - within which the detailed law - voidable transactions, trusts etc - is applied. The detail and the system often overlap, the use of money from preference claims to support the "financial viability" of liquidators in working in an inadequately funded system is an example.
And while Treasury was no doubt consulted, it cuts across existing inquiries, for example into trusts, and safe harbour. ??
In any event, submissions are due by 30 November 2022.
Owner - Registered Liquidator and ARITA Fellow at Beacon Advisory
2 年From little things, big things grow...
Business Recovery, Mediation and Negotiation
2 年Is the calling of a review a ‘surprise’ Michael Murray?
There may be a few people who have a few things to feedback to the Government on this subject....
Experienced Banking Expert Witness - Business, Commercial, Corporate Lending, Loan Restructuring, Debt Advisory, Recapitalisation
2 年Spot on Michael Murray! Anyone hoping this will be a root and branch review will be sorely disappointed. Having been involved with several senate & PJC inquiries: they are severely under-resourced, conducted by very busy politicians squeezing in what they can around a very busy schedule, and run to an short time line. My predictions for recommendations: 1. More not less red tape for liquidators, probably around remuneration 2. Measures that might will improve the recovery powers of the ATO and FEG 3. Measures that appear to protect employee entitlements