Baker Mckenzie professionals in our Australia offices have compiled a document that provides a summary of the most common Australian formal corporate insolvency regimes, namely:
• voluntary administration;
• receivership; and
• winding up.
It also covers creditors’ schemes of arrangement which are increasingly being used in larger restructurings. Some other types of formal insolvency regimes that are less common are not covered and are beyond the scope of this document, for example, provisional liquidation and informal insolvency mechanics, such as workouts.
Australian corporate insolvency law is Commonwealth, not State based, and is governed by various statutory instruments, including the Corporations Act 2001 (Cth) (Corporations Act), the Insolvency Practice Schedule (Corporations) a schedule to the Corporations Act, the Corporations Regulations 2001 (Cth) (Corporations Regulations) and the Insolvency Practice Rules (Corporations) 2016
(Cth) (Insolvency Practice Rules). All statutory references in this document are to the Corporations Act unless stated otherwise.
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