The Federal Government has released draft regulations of the Government’s plans to reform and modernise the country’s insolvency framework.

 

The release of the framework comes after the Corporations Amendment (Phoenixing and other Measures) Bill 2012 was passed earlier this month.

 

"Passage of this Bill will benefit the employees of abandoned companies by facilitating access to their unpaid entitlements through the government's employee assistance scheme," Parliamentary Secretary Bernie Ripoll said.

 

The Bill empowers the corporate regulator, the Australian Securities and Investments Commission (ASIC) to order the winding up of companies that directors abandon in the context of fraudulent phoenixing, allowing workers to access their entitlements under GEERS.


"The Bill also paves the way for the publication of corporate insolvency notices via a single, publicly available website. This will benefit creditors of companies in external administration, by reducing the costs of complying with these regulatory obligations," said Mr Ripoll.

 

The draft Corporations Legislation Amendment Regulation 2012 can be accessed on the Treasury website, www.treasury.gov.au. Submissions are due by 1 June 2012.