10. January 2011 15:10
The Corporations Amendment (Sons of Gwalia) Act commenced on 18 December. A copy of the Act as passed is available on Comlaw.
Broadly, the amendments mean that:
1. Being a shareholder does not in itself preclude a claim for compensation in insolvency;
2. BUT payment of all subordinate claims (broadly, claims as a shareholder or that relate to dealing with shares) is postponed until ALL other claims against, and debts payable by, the company in insolvency have been paid.
3. A person whose claim against the company has been postponed is entitled to request and receive documents relating to the insolvency, and in some circumstances to vote at certain meetings regarding the conduct of the external administration (with the permission of the court).
Subscribers are referred to the extensive discussion of the Bill's terms and likely effect in Ford's Principles of Corporations Law at [24.510].