Corporate insolvency reforms introduced

The Parliamentary Secretary to the Treasurer, Chris Pearce MP, has introduced the Corporations Amendment (Insolvency) Bill 2007 into Parliament.

The Insolvency Bill will:

• strengthen the protection of employee entitlements, improving insolvency practitioner disclosures to creditors (including on independence and remuneration), and streamline procedures
• extend ASIC’s investigative powers in monitoring liquidators and improving court processes in relation to misconduct by company officers.
• introduce more regular reporting requirements for insolvency practiotioners, requiring adequate insurance to be held and providing greater flexibility to the Companies Auditors and Liquidators Disciplinary Board.
• Fine tune the voluntary administration process.

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UPDATE 9 August 2007: Bill passed by Senate.