- CPD Points: 1 [SL]
- Price: $77.00
- Area: Bankruptcy and insolvency; Business Law; Commercial Law; Companies / Corporations Law
- Delivered: December 2020
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In the economic fallout of the COVID-19 pandemic, the Federal Government announced reforms to the Corporations Act which aim to streamline insolvency appointments to, and business restructuring for, small businesses. The reforms implemented a ‘debtor in possession’ appointment model which is in large part based upon Chapter 11 of the United States Bankruptcy Code, and which have the potential to affect a significant number of insolvency appointments – particularly in Tasmania where appointments are rarely to larger corporate entities.
Travis Anderson, registered liquidator and partner of Deloitte Restructuring, and Chris Groves, principal of Dobson Mitchell Allport, address the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) that took effect on 1 January 2021, using a model of an expected appointment and discussing matters upon which legal practitioners may – and should not – advise. Key takeaways include – Introduction to the new Part 5.3A of the Corporations Act, its application and intent; A practical example: how the reforms may or may not assist a struggling small business; Constraints and legislative exclusions of which practitioners should be aware of when advising; and The potential roles of lawyers when assisting debtors and creditors impacted by the reforms.