Insolvency Law Reform update
In late 2007 Parliament passed the Corporations Amendment (Insolvency) Act 2007, along with the Corporations Amendment Regulations and the ASIC Amendment Regulations 2007. The amendments have four themes:
- Improve outcomes for creditors
- Deter corporate misconduct
- Improve regulation of insolvency practitioners
- Fine tune the voluntary administration process
We have been progressively updating our policy, systems and processes as a result of this legislative reform.
So far we have updated and implemented key forms and procedures, issued four Bulletins, updated the online portal for non-pooling form changes, issued Regulatory Guide 194: Insurance requirements for registered liquidators (RG 194) and consulted extensively with your industry.
What’s new?
Pooled groups
As part of this reform, a liquidator or the Court can determine, under s571 or 579E of the Corporations Act 2001, that two or more companies in external administration can be pooled as a group for the purpose of winding–up.
On 26 August 2008 the Registered Liquidator portal was enhanced to allow for the online lodgment of the following forms for these pooled groups:
- 523 Notification of final meeting convened by liquidator
- 524 Presentation of accounts and statements
- 1500 Annual report to creditors in a creditor’s voluntary winding-up
- 1501 Notification of details of pooling determination or order
- 1502 Notification of variation to details of pooling determination or order
- 5011 Copy of minutes of meeting
When you lodge a Form 1501 online to tell us about a pooled group we record the pooled group on our register. After that, any of these forms lodged online will automatically be recorded against each company within that pooled group:
- You will only need to lodge one form for the group.
- You will only have to pay a single fee.
Liquidators will be able to get an online report of their pooled groups and the companies within them.
There is no paper equivalent for pooled group forms—you must lodge online to benefit from this feature.
Policy
Work is continuing on the update of ASIC policy. You will be notified separately when policy is available for release.
More information
If you have any queries, please email info.enquiries@asic.gov.au
ASIC Website: Printed 07/29/2010
