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Content Type:
Position Paper
01 Mar 2000
...net scheme for workers recently announced by the Federal Government, sound policy has been put at risk.The loss of employee entitlements due to insolvency, and associated director responsibilities, is a serious issue and needs sustainable long-term solutions. Otherwise we will continue to see ad-hoc policy making which...
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Content Type:
Policy Submission
24 Jan 2012
This submission to Treasury is in response to the exposure draft of the Corporations Amendment (Phoenixing and Other Measures) Bill 2012.
While we support effective efforts to reduce fraudulent phoenix activity, we are eager to ensure that measures adopted to curtail the activ...
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Content Type:
The Boardroom Report
16 Nov 2011
Director pessimism grows, Australia urged not to squander its good fortune, Proposed Bill proves not so super, Weathering tough times, ASIC finalises guide on prospectuses,
Director pessimism grows
Over the past six months directors have become more pessimistic about current economic...
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Content Type:
Policy Submission
29 Jul 2011
...Institute of Company Directors provided comments to Treasury in response to the Options Paper: A Modernisation and Harmonisation of the Regulatory Framework Applying to Insolvency Practitioners. Our submission agreed that efforts should be taken to reduce the incidence of fraudulent phoenix activity but noted that there were issues with the...
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Content Type:
Director Q and A
04 Jan 2011
...for not complying. This Q&A covers the definition of insolvent trading and breaching the Act. It also discusses the warning signs of insolvency and the available defences for directors under the Corporations Act 2001. Section 588G of the Corporations Act 2001 creates what many regard as one of...
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Content Type:
Director Q and A
04 Jan 2011
Companies have a legal responsibility to keep written financial records and to regularly report to members their financial performance and position. This Q&A suggests what questions to ask before approving financial statements.
Companies have a legal responsibility to keep written financial ...
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Content Type:
Policy Submission
24 Sep 2010
...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...
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Content Type:
Position Paper
19 Jul 2010
The upcoming election (Federal Election 2010) is an important one for our nation. Regardless of which party forms the next government, it is an opportunity to rethink not only the way government approaches some key issues but how it conducts its relationship with business.
The Australian Institu...
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Content Type:
CDM Article
01 Jun 2010
...there has been debate as to whether directors might be said to owe a duty to creditors, especially where companies may be close to insolvency. The High Court of Australia has ruled that that is not the case. Also, the courts have consistently stated that directors do not owe duties...
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Content Type:
CDM Article
01 Jun 2010
An outline of some of the issues addressed recently by the Australian Institute of Company Directors’ Policy and Advocacy team.
Policy Update
Diversity mentoring program underway
Some of Australia’s most senior company chairmen and directors are participating in the Australian Institute of Com...
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Content Type:
CDM Article
01 May 2010
Michael Dwyer discusses ASIC’s approach to corporate insolvency and regulation of the profession. Regulation of the insolvency industry With rising insolvencies flowing from the global economic crisis, a number of company directors may be exposed to an external administration or they may be working through a restructuring or, more...
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Content Type:
CDM Article
01 Apr 2010
Gabrielle Upton
explains why a broad business judgement rule for directors could create better outcomes for companies in financial difficulty as well as their shareholders and creditors.
Safe harbour from insolvent seas
Laws to protect stakeholders in the event of insolvent trading are v...
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Content Type:
Policy Submission
02 Mar 2010
We are concerned that current laws on insolvent trading sometimes prevent the best stakeholder outcomes from being achieved. They make trading out of insolvency not only extremely risky but they prohibit it for the directors of a company in solvency stress. Each director faces being held personally liable for any...
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Content Type:
CDM Article
01 Mar 2010
...worthless shares off the back of a wrongly bullish corporate announcement. Reversing the High Court decision shoves them right to the back of the insolvency queue, behind creditors and licking their wounds alongside the rest of the company’s hapless shareholders. Here are three reasons why the Government’s decision...
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Content Type:
CDM Article
01 Feb 2010
...insolvent trading and on the key principles ASIC considers directors need to take into account when performing their duty to prevent insolvent trading. With insolvency statistics still trending up, ASIC wants to ensure directors understand they should be taking advice to avoid trading while insolvent, so that creditors are protected...
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Content Type:
CDM Article
01 Feb 2010
The global financial crisis brought Australia’s insolvency laws back into the spotlight. Towards the end of last year, AICD and PPB hosted a discussion on whether these laws were adequate and why urgent reform was required. Viewpoint Australian businesses enjoyed a period of sustained economic growth that provided boards...
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Content Type:
Media Release
19 Jan 2010
The package of insolvency law reforms announced by the Minister for Corporate Law, Chris Bowen, addresses some significant concerns of business and the director community, the Australian Institute of Company Directors said today.We welcome the measures, which included amendments to the Corporations Act which would reverse the effects of...
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Content Type:
Policy Submission
22 Dec 2009
...responsibilities of directors and managements. This means that material changes must be made to the guide which address such matters as what information is properly available to directors and when they may consider taking expert advice in cases of suspected insolvency. ASIC Consultation Paper 124 Duty to Prevent Insolvent Trading
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Content Type:
Policy Submission
22 Dec 2009
In this submission, AICD argues that there is sufficient regulation to curb phoenix activity such as the trading while insolvent provisions in the Corporations Law. There are also ASIC schemes like the Assetless Administration Fund that permit investigations and reports by liquidators that may ident...
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Content Type:
CDM Article
01 Dec 2009
Professor Bob Baxt
argues that MINCO’s recently released principles governing director liability are a step in the right direction, but do not go far enough.
Not far enough
The announcement on 6 November by the Minister for Corporate Law Chris Bowen that the Ministerial Council for Corpo...