28. November 2010 18:30
The Corporations Amendment (Sons of Gwalia) Bill 2010 passed the Senate on 26 November 2010.
The Bill reverses the High Court’s decision in Sons of Gwalia v Margaretic, which found that s 563A of the Corporations Act did not subordinate certain compensation claims by shareholders below the claims of other creditors.
As the Parliamentary Secretary to the Treasurer, David Bradbury, added: "The amendments also streamline the treatment of shareholder claimants in an external administration and eliminate common law restrictions on the capacity of a shareholder to recover damages against a company."
The revised text of the bill is available from its official Parliament House page. It is currently awaiting Royal Assent.