Commonwealth of Australia Explanatory Memoranda

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BANKRUPTCY LEGISLATION AMENDMENT BILL 2004

2002-2003-2004



THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





HOUSE OF REPRESENTATIVES





BANKRUPTCY LEGISLATION AMENDMENT BILL 2004





SUPPLEMENTARY EXPLANATORY MEMORANDUM


Amendments to be Moved on Behalf of the Government



(Circulated by authority of the Attorney-General,
the Honourable Philip Ruddock MP)

AMENDMENTS TO BANKRUPTCY LEGISLATION AMENDMENT BILL 2004

Outline

The Corporations Act 2001 refers to deeds and compositions under the existing Part X for a range of purposes (for example, for the purpose of disqualifying a person from managing a corporation where a person has entered into a Part X arrangement). In many cases, these references are specifically to deeds of assignment, deeds of arrangement and compositions. As such, it is necessary to amend these references to reflect the repeal of the three types of Part X administrations and the introduction of personal insolvency agreements. The proposed amendments to the Corporations Act made by items 191A to 191D will reflect the new terminology.

Currently, under subsection 206B(4), a person is disqualified from managing a corporation if he or she has executed a deed of arrangement or creditors have accepted a composition under Part X. That restriction does not apply to a person who has executed a deed of assignment. Under the Bill’s proposed amendment at item 191D, a person will be disqualified where they have executed a personal insolvency agreement; it is not possible to retain those particular circumstances allowing an exception to disqualification.

Financial Impact

There is no financial impact.

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