A Bill just released by the Australian Government’s Treasury department (17/2) contains amendments to the winding up of companies, a new duty for external administrators of companies that are “paid parental leave employers”, changes to requirements regarding the publication of notices, and changes to laws governing deregistration of companies.
The Bill is titled the Corporations Amendment (Phoenixing and Other Measures) Bill 2012 and is described, officially, as follows:
“The Bill amends the Corporations Act 2001 (Corporations Act) to: introduce an administrative process for compulsory external administration to facilitate payment of employee entitlements and address phoenix company activity; include a regulation making power to prescribe methods of publication of notices relating to events before, during and after the external administration of a company; and to make other miscellaneous, minor and technical amendments.”
There is plenty in the Bill that Australian insolvency practitioners will need to be aware of.
The first part of the Bill is titled “Winding up by the ASIC”. It includes the following new and amended sections:
- Section 489EA – ASIC may order the winding up of a company
- Section 489EB – Deemed resolution that company be wound up voluntarily
- Section 489EC – Appointment of liquidator
- Section 601AA (6) & (7)
- Section 601AB (6) & (7)
- Section 1317C (ca).
Part two is titled “Publication requirements” and has the following new and amended sections:
- 412(1)(b)
- 412(4)
- 436E(3)(b)
- 439A(3)(b)
- 446A(5)(b)
- 449C(5)(b)
- 450A(1)(b)
- 465A(c)
- 491(2)(b)
- 497(2)(d)
- 498(3)
- 509(2)
- 568A(2)
- 589(3)(a)
- 601AA(4)
- 601AB(1)
- 601AB(3)
- 601AB(4)
- 601AB(5)
- 1351(4)(a)(i)
- 1367A
Part 3 is titled “Miscellaneous amendments” and contains the following new and amended sections:
- Section 9 – (New) Definition of “paid parental leave employer”;
- Section 600AA – (New) Duty of receiver, administrator or liquidator—parental leave pay;
- Section 601AH(3)
There are also extensive transitional provisions.
To see the Bill and the Explanatory Memorandum click this link to the Australian Government Com Law website.