The Bill proposes a significant number of changes to the Corporations Act 2001 (Cth), the Bankruptcy Act 1966 (Cth) and other consequential amendments to related legislation. The proposed amendments contained in the Insolvency Law Reform Bill 2014 (Cth) are extensive, running to more than 400 pages.
At its centre, the Bill aims to make significant changes to the way in which the insolvency and bankruptcy profession (comprised of solicitors, barristers, accountants and business restructuring specialists) is regulated. It is expected that the Australian Restructuring Insolvency and Turnaround Association (ARITA) will take a much more authoritative role in the regulation of practitioners in the insolvency profession. Additionally, the amendments attempt to increase creditor rights and increase the education requirements imposed upon those practising in insolvency and bankruptcy.
It has been indicated that the Insolvency Law Reform Bill 2014 (Cth) Bill will:
- Result in increased efficiency in the administration of bankrupt estates/insolvent companies as well as removing unnecessary costs;
- Ensure that there is more transparency and levels of interaction between the various stakeholders in an insolvency scenario;
- Promote competition focused on the price and quality of insolvency services;
- Increase public confidence in competence, diligence and professionalism of insolvency practitioners; and
- Reduce or remove unnecessary costs from the insolvency, bankruptcy and restructuring industry, with the result being compliance savings of approximately $55.4 million per annum.
Please note that the above does not constitute legal advice and Irish Bentley Lawyers make no representations or warranties as to the accuracy of any of the information contained herein. If you have a bankruptcy, insolvency or restructuring/turnaround issue, then please do not hesitate to contact the team at Irish Bentley Lawyers – there is no substitute for proper legal advice based on your unique circumstances.