TMA Voluntary Code for Equitable Insolvency & Restructuring Appointments (EIRA)

Read more about the code – https://turnaround.org.au/wp-content/uploads/2024/09/TMA-Australia-Vountary-Code-EIRA.pdf

Sign up to the code – https://turnaround.org.au/wp-content/uploads/2024/09/TMA-NOW-Houlihan-Lokey-Sponsorship-The-Code-10-Sept.pdf

Given the widespread acceptance of the Law Council of Australia Equitable Briefing Policy, the TMA recommends that firms and organisations working in insolvency, restructuring and turnaround adopt the TMA Voluntary Code for Equitable Insolvency & Restructuring Appointments (EIRA) launched at the TMA National Conference on 11 September 2024. Firms or organisations that sign up will have their logo included on the TMA website. The EIRA is proposed as part of a suite of initiatives by the TMA using generous sponsorship from Houlihan Lokey intended to increase the engagement and retention of women in restructuring and turnaround.

What problem are we trying to fix?

As at 30 June 2024, according to the ASIC published insolvency statistics, only 10% of registered liquidators nationally were female. Women being only 10% of registered liquidators in Australia is unacceptable. In no corporate sector would this statistic – which does not reflect the percentage of women accountants be considered appropriate or acceptable in Australia in 2024.

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The Parliamentary Joint Committee into Corporate Insolvency (PJC) in their July 2023 report said this:

8.26 While many other industries and professions have managed to improve diversity among their ranks, registered liquidators appear to have been locked in a time capsule that was buried years ago.
8.27 The fact that female representation amongst registered liquidators has improved to one in ten over the past decade is alarming. It appears that we are not alone in facing this issue. There are clearly broader cultural or systemic issues at play, and they must be reflected on and addressed.

Why does this matter

In too many recent large or high-profile formal insolvencies with 3 or more appointees, the insolvency practitioners appointed as external administrators or receivers have been all male.

It is trite to say that “you can’t be what you can’t see”: we need to show emerging women that there are career paths for them, and the appointment of registered liquidators (particularly on larger voluntary administrations) is very public. We also need to ensure that we support the careers of women in all parts of the restructuring and turnaround universe (including accounting, legal, advisory, capital providers and trustee services) to have sustainable “partner level” (or the equivalent in their organisations) practices in due course, so that they can in turn succeed and bring more women through. Registered liquidators, on larger formal appointments, give out a lot of work to adjacent professionals including lawyers, valuers, experts, trustee services and the like, and more women registered liquidators being appointed will mean more work for women in the rest of the restructuring and turnaround ecosystem.

Why is the TMA doing this?

Of course a lot of restructures are achieved through a formal insolvency process.

Our membership includes a significant number of registered liquidators, and those who would seek to become registered liquidators. Four of our national board are registered liquidators as well as many members of our state committees. Our membership includes people who were registered liquidators and have ultimately moved to different roles within the broader restructuring and turnaround ecosystem. Younger women members at TMA Network of Women (NOW) dinners raise with us the deterrents to them becoming registered liquidators and to building sustainable careers in restructuring and turnaround.