ARITA makes additional submission to parliamentary inquiry into corporate insolvency
The Australian Restructuring Insolvency and Turnaround Association has completed its second submission to the Parliamentary Joint Committee’s inquiry into Australia’s corporate insolvency law.
The 75-page document, which follows ARITA’s initial 90-page submission made in December 2022, answers questions asked by the committee during ARITA’s presentation to it on 14 December while also providing additional information to supplement its initial submission.
Both submissions support ARITA’s belief that Australia needs a single unified insolvency law that encourages a turnaround and restructuring culture, enhances creditor outcomes by reducing unnecessary regulatory burdens, and deals effectively with malfeasance on the part of both business operators and insolvency professionals.
ARITA believes the new law should be administered by a new, for-purpose agency whose task would be encouraging a turnaround culture, increasing the understanding of business operators about their opportunities and obligations when their businesses are in trouble, and enforcing the law in a rigorous way.
Chaired by Senator Deborah O’Neill, the Parliamentary Joint Committee on Corporations and Financial Services was formed on 28 September 2022, and intends to deliver its report to both houses of parliament by 30 May this year.