Part 5.3A: The Impact of Changes to the Australian Corporate Rescue Regime
Insolvency Law Journal, Vol. 15, p. 243, 2007
15 Pages Posted: 24 May 2011
Date Written: 2007
Abstract
It has been 15 years since Pt 5.3A of the Corporations Act 2001 (Cth) was introduced into the Australian corporate insolvency regime (pursuant to the Corporate Law Reform Act 1992 (Cth)). It is only now that the first “major” legislative changes relating to Pt 5.3A have been introduced. It is therefore appropriate to examine broadly the operation of the procedure thus far and to consider it in the context of future direction. This article broadly examines the way in which the voluntary administration and accompanying deed of company arrangement processes have evolved, and how this relates to the amendments within the Corporations Amendment (Insolvency) Act 2007 (Cth). This article therefore identifies the key design principles underlying
Pt 5.3A; examines the broad themes that have emerged in the legislation to date (encompassing a review of the original intention and the background to the implementation of the Part) before dealing with the subsequent amending legislation that followed the reviews of the existing Pt 5.3A provisions. Finally, the article draws some conclusions about the potential future direction of the Pt 5.3A procedure.
Keywords: Corporate Insolvency, Australia, Part 5.3A, Voluntary Administration
JEL Classification: K00, K39
Suggested Citation: Suggested Citation