The regulation registration and remuneration of insolvency practitioners in australia

On 24 September 2010, the Australian Institute of Company Directors wrote to the Hon Wayne Swan MP and the Hon David Bradbury MP regarding the Senate Economics References Committee Report entitled: The regulation, registration and remuneration of Insolvency Practitioners in Australia: the case for a new framework.

Our letters noted that the issues facing directors, insolvency practitioners and regulators are often highly complex in corporate insolvencies. For this reason it is essential that the regulator charged with overseeing the corporate insolvency process have the requisite corporate knowledge and expertise to undertake this process. Although the Report recommended that the corporate insolvency arm of ASIC be transferred to ITSA, the Australian Institute of Company Directors stated that if there was a view that ASIC was under-resourced further funding should be provided to allow ASIC to more effectively oversee, monitor and regulate issues that relate to corporations at each stage of their lifecycle.

The Australian Institute of Company Directors also stated that a broad business judgment rule defence should be inserted into the current insolvency laws. In the event that any review is to be conducted into the harmonisation of personal bankruptcy and corporate insolvency laws the Australian Institute of Company Directors recommended that the terms of the review include the consideration of the effectiveness of the current corporate insolvency regime.

Letter to the Hon Wayne Swan MP 
Letter to the Hon David Bradbury MP