29. September 2010 10:04
The government has announced that it intends to reintroduce the Corporations Amendment (Sons of Gwalia) Bill in the Spring sitting of Parliament.
Edited to add: this Bill was introduced into the House of Representatives on 29 September 2010. Click here to read the second reading speech.
The Bill will amend the Corporations Act to:
reverse the effects of the High Court decision in Sons of Gwalia that compensation claims for corporate misconduct made by shareholders against companies are not subordinated below the claims of creditors;
address the ability of subordinated shareholder claimants to vote and receive reports to creditors, irrespective of whether they have a financial interest in the insolvency administration; and
remove a restriction on some shareholders bringing compensation claims against companies.
For a detailed analysis of the proposed reform, subscribers can click through to [24.510] of Ford's Principles of Corporations Law.