The government has launched a consultation on the recommendations of the Insolvency Working Group to judge whether proposed changes to the corporate insolvency law are fair to all stakeholders.
Commerce and Consumer Affairs Minister Jacqui Dean released the second and final part of the insolvency law review on Monday, and said that the consultation will decide whether proposals made by the working group balance competing interests.
“The working groups’ second report focuses on two important areas, voidable transactions and whether the procedures for dealing with the liquidation of Ponzi schemes can be improved. The working group recommends a number of changes to the voidable transaction regime that it believes would better balance the competing interests of individual creditors and all creditors,” she said.
“I am releasing this report for consultation so I can hear from all interested parties whether the Insolvency Working Group’s recommendations would strike the right balance between these two important but conflicting objectives,” she added.
The working group recommends preferential status to gift card and voucher holders in case of insolvencies. In the first report, it also recommended the introduction of a Director Identification Number (DIN). Dean has released a discussion document on DINs for public consultation.
Consultations for the recommendations will run until 23 June. The working group’s report, DIN discussion documents, and submissions portal can be
accessed here.
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