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Insolvent Trading: A Safe Harbour for Reorganisation Attempts Outside of External Administration

Date:

Tuesday, 19 January 2010

Content ID:

1713

Abstract:

On 19 January 2010, the Minister for Financial Services, Superannuation and Corporate Law announced the release of a discussion paper on the operation of Australia's insolvent trading laws in the context of attempts at business rescue outside of external administration.

The insolvent trading discussion paper contains an overview of the current insolvent trading laws; the options available to companies facing insolvency; and outlines the advantages and disadvantages of informal corporate work-outs. The paper sets out three possible options: to maintain the status quo; to adopt a modified business judgement rule in respect of the director's duty to avoid insolvent trading; and to adopt a mechanism for invoking a moratorium from the insolvent trading prohibition while work-outs are attempted.

The Minister released the discussion paper in the context of announcing the Government's corporate insolvency reform package.

Making a submission

Interested parties are invited to comment on the paper. While submissions may be lodged electronically or by post, electronic lodgment is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Tuesday, 2 March 2010

Address written submissions to:
Manager
Governance and Insolvency Unit
Corporations and Financial Services Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: insolventtrading@treasury.gov.au

Telephone enquiries may be made by calling (02) 6263 3971

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Insolvent Trading Discussion Paper  178.05kb
2010 Corporate Insolvency Reforms  56.06kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Insolvent Trading Discussion Paper  1,883.88kb
2010 Corporate Insolvency Reforms  96.37kb

Related Items:

Submissions: Insolvent Trading: A Safe Harbour for Reorganisation Attempts Outside of External Administration - 8/03/2010

Treasury received 22 submissions in response to its discussion paper "Insolvent Trading: A Safe Harbour for Reorganisation Attempts Outside of External Administration". All of these are public submissions and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

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