A new statutory director’s duty for Australia — a ‘duty’ to be concerned about employee entitlements in the insolvent corporation
✍ Scribed by Christopher F. Symes
- Publisher
- John Wiley and Sons
- Year
- 2003
- Tongue
- English
- Weight
- 141 KB
- Volume
- 12
- Category
- Article
- ISSN
- 1180-0518
- DOI
- 10.1002/iir.112
No coin nor oath required. For personal study only.
✦ Synopsis
Abstract
Australia has introduced legislation that is aimed at preventing a person from entering into agreements or conducting transactions with the intention of defeating the recovery of employee entitlements. It is essentially aimed at directors and their behaviour in the pre‐appointment period. This paper discusses the history leading up to such a legislative move and the likely benign impact now that the Corporations Act in Australia prohibits such behaviour. Further, the paper argues that mooted changes to the legislation giving employees a ‘maximum priority’ ahead of secured creditors is unnecessary. Copyright © 2003 John Wiley & Sons, Ltd.