Submission: Improving the technology neutrality of Treasury portfolio laws repealing s 600G
ARITA has made a submission in the response to the exposure draft legislation and explanatory material in relation to improving the technology neutrality of Treasury portfolio laws, which includes the proposed repeal of s 600G of Chapter 5 – External Administration of the Corporations Act 2001 (Act) covering electronic communication of documents.
The submission raises significant concerns regarding the proposed repeal of s 600G and stressed that ARITA is strongly of the opinion that it should be retained.
As members would be aware, s600G has only recently been amended to facilitate the wholesale use of electronic signing and communications in external administrations and the submission noted that they are working well.
Given the unique nature of external administrations we believe that the repeal of the section is unnecessary and will result in further regulatory burden for the profession, that has already experienced significant burden since the Insolvency Law Reform Act 2016 and the small business reforms in 2020.
Having reviewed the Exposure Draft legislation, Exposure Draft regulations and the proposed reforms in the Corporations Amendment (Meetings and Documents) Bill 2021, the submission raises some specific concerns regarding the use of electronic signing and communications in external administrations.
Pleasingly Treasury scheduled a consultative meeting with ARITA very soon after the submission was lodged and is cognisant of the concerns raised. During the meeting it was clarified that the definition of ‘this Act’ in s 9 of the Act addresses the concerns raised regarding the extension of the new provisions to instruments, including the Insolvency Practice Rules (Corporations) 2016.
ARITA will continue to monitor the progress of the consultation and engage with Treasury regarding the proposed amendments.
Read ARITA’s Submission
Treasury consultation: Improving the technology neutrality of Treasury portfolio laws
NOTE: The bill was not passed prior to the election being called and lapsed at dissolution