Although it started out with a dream run, the Bill to allow ASIC to order the winding up of companies has been the subject of considerable debate in the House of Representatives.
The government had hoped to get the Corporations Amendment (Phoenixing and Other Measures) Bill 2012 through quickly. It was introduced in the House on 15 February 2012. A day later it was referred to the House Standing Committee on Economics. The Committee met via a telephone conference – which lasted less than a minute – on 21 February 2012 and resolved to discharge the reference. The Committee issued a statement of explanation on 27 February 2012, saying:
“….the committee considers that the Bill comprises uncontroversial measures that will assist in curbing the amoral practice of phoenixing.”
The Committee quoted from a briefing issued by the law firm Minter Ellison, which expressed the view that the Bill “contains some reasonable measures for facilitating the protection of workers’ entitlements. These measures are unlikely to affect the position of the majority of directors.”
But back in the House of Reps heated debate ensued. A total of seventeen speeches for and against the Bill were made by MPs. Naturally MPs took the view of their party, but nevertheless the debate did explore many of the issues involved. Those who spoke were:
Joe Hockey (LP) (Opposition); Julie Owens (ALP) (Government); Scott Buchholz (LP); Bernie Ripoll (ALP); Paul Fletcher (LP); Gai Brodtmann (ALP); Deb O’Neill (ALP); Steven Ciobo (LP); Sharon Grierson (ALP); Steve Irons (LP); Kelvin Thompson (ALP); Bruce Billson (LP); Mike Symon (ALP); Bert Van Manen (LP); Tony Zappia (ALP); Stuart Robert (LP); David Bradbury (ALP).
All the speeches may be seen at the following link:
The main protagonists were David Bradbury (for) and Joe Hockey (against). The speech on 1 March 2012 by David Bradbury will be found by following this link:
The speech on 1 March 2012 by Joe Hockey will be found by following this link:
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None of the debate touches on the technical issues that I pondered in my post entitled Questions concerning new power for winding up by ASIC.