The Insolvency Implications for Corporate Groups in Australia - Recent Events and Initiatives

International Insolvency Review, Vol. 16, No. 2, pp. 103-122, 2007

5 Pages Posted: 29 Apr 2013

See all articles by Jennifer Dickfos

Jennifer Dickfos

Griffith University

Colin J. Anderson

Queensland University of Technology - Faculty of Law

David S. Morrison

The University of Queensland - T.C. Beirne School of Law

Date Written: 2007

Abstract

The regulation of corporations and their insolvency is in most jurisdictions based upon the separate entity principle.There has been increasing concern though with how this fundamental principle of corporate law should apply in insolvency where separate entities operate as a corporate group. The primary regulation of corporations in Australia is governed by the Corporations Act 2001(Cth). This single enactment provides for the regulation of corporate insolvency within Chapter 5 - External Administration. In relation to corporate groups, the Corporations Act generally applies an entity approach that results in each company being treated as a distinct legal entity, consistent with the separate legal entity principle (common shareholders notwithstanding). However, recent proposed amendments to Chapter 5 recognize, albeit to a limited extent, an enterprise approach when dealing with the insolvency of a company/companies in a corporate group.

Keywords: Business studies, Influence, Affiliated corporations, Bankruptcy law, Corporations and Associations Law, Laws, regulations and rules, Pooling

JEL Classification: G33, K22, K23

Suggested Citation

Dickfos, Jennifer and Anderson, Colin J. and Morrison, David S., The Insolvency Implications for Corporate Groups in Australia - Recent Events and Initiatives (2007). International Insolvency Review, Vol. 16, No. 2, pp. 103-122, 2007. Available at SSRN: https://ssrn.com/abstract=1802239

Jennifer Dickfos

Griffith University ( email )

Gold Coast Campus
Parklands Drive
Southport, 4217
Australia

Colin J. Anderson

Queensland University of Technology - Faculty of Law ( email )

Level 4, C Block Gardens Point
2 George St
Brisbane, QLD 4000
Australia
+61 7 3138 1099 (Phone)
+61 7 3138 2121 (Fax)

David S. Morrison (Contact Author)

The University of Queensland - T.C. Beirne School of Law ( email )

The University of Queensland
St Lucia
4072 Brisbane, Queensland 4072
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
74
Abstract Views
395
rank
321,663
PlumX Metrics