Parliamentary Joint Committee on Corporations and Financial Services – inquiry into corporate insolvency – Update

The TMA acknowledges the care and consideration that the PJC under the leadership of Senator O‘Neill has brought to this substantive report (here)

The TMA welcomes the proposed comprehensive review of Australia’s insolvency law the report proposes, and look forward to engaging in that process, including to advocate for a key purpose of insolvency law to be the preservation of business and jobs where possible, and to encourage those undertaking the review to have regard to the considerable learnings from other jurisdictions as to effective restructuring mechanics (particularly the UK and Singapore).

The TMA is particularly pleased with Recommendation 7 that the government implement the recommendations of the Safe Harbour Review (which was chaired by TMA Australia Director, Genevieve Sexton), independently and in advance of the comprehensive review. The TMA made a detailed submission to the Safe Harbour Review summarising the TMA’s position that the safe harbour regime is effective and working well to preserve value in distressed companies.

The TMA also welcomes key Recommendation 12, which seeks to address shocking gender inequity in the registered liquidator ranks, an issue our members regularly raise with us. As the PJC notes, “registered liquidators appear to have been locked in a time capsule that was buried decades ago”.  The TMA urges the parliament to consider the very practical and immediate steps that can be taken to address the regulation of liquidator registration proposed by the TMA in its response to questions on notice from the PJC in advance of the comprehensive review.

The TMA working group that prepared the submissions was led by Richard Hughes, with input from Paul Apathy, Jennifer Ball, Cameron Belyea, Lily Davies, Gayle Dickerson, Georgia Gamble, Scott Guthrie, Clint Joseph, Alinta Kemeny, Jason Preston, Maria O’Brien, Meagan Osinga, Emily Seeckts, and Ann Watson with huge contribution and support from Melissa Ferreira. Thank you all for your contributions!  To view TMA Australia submission – here