"Corporations Law
The Corporations Law came into effect in 1989 as the first real federal
companies legislation.

In 1993 the Corporations Law was amended 23 by inserting Part 5.3A, which
introduced the voluntary administration procedures for insolvent companies.
Voluntary administration has been the most significant development in corporate
insolvency in Australia and has resulted in a change in the dynamics of
corporate insolvency in this country. Voluntary administration is a process by
which the affairs of an insolvent company are placed under the control of an
administrator who enjoys, for a short period in most cases, a moratorium against
creditors. During this time the administrator can investigate the company and
advise creditors as to the best means of achieving an outcome that will result
in a better return to creditors than would be achieved if the company was wound
up. To this end, the creditors may vote to accept a deed of company arrangement
that will bind ALL creditors and allow the business of the company to continue.

As the voluntary administration process puts the future of the company in the
hands of the creditors, employees (who often make up the majority of creditors
in both number and value) play a significant role in the company's future. "

http://www.maddocks.com.au/download/employee.pdf
----- Original Message -----
From: Paul S Davis
To: openvictims@...
Cc: otmushrooms@...
Sent: Monday, 3 February 2003 21:51
Subject: THE HISTORY OF EMPLOYEE PRIORITY AND PROTECTION


The extent to which those administering the GEERS scheme will participate in
the voluntaryadministration process is yet to be seen. However, in order for the
system to be viable in thelong term and not impose a substantial cost burden on
the Australian taxpayer, it issubmitted that the Federal government should
actively participate in each administration toensure they receive the best
return. It will be interesting to see whether GEERS has theresources, and the
Federal government has the inclination, to participate in this wayThe extent to
which those administering the GEERS scheme will participate in the
voluntaryadministration process is yet to be seen. However, in order for the
system to be viable in thelong term and not impose a substantial cost burden on
the Australian taxpayer, it issubmitted that the Federal government should
actively participate in each administration toensure they receive the best
return. It will be interesting to see whether GEERS has theresources, and the
Federal government has the inclination, to participate in this wayTHE HISTORY OF
EMPLOYEE PRIORITY AND PROTECTION IN AUSTRALIAN CORPORATE INSOLVENCY

"...The extent to which those administering the GEERS scheme will participate
in the voluntary administration process is yet to be seen. However, in order for
the system to be viable in the long term and not impose a substantial cost
burden on the Australian taxpayer, it is submitted that the Federal government
should actively participate in each administration to ensure they receive the
best return. It will be interesting to see whether GEERS has the resources, and
the Federal government has the inclination, to participate in this way..."

See the whole article at: http://www.maddocks.com.au/download/employee.pdf.


[Non-text portions of this message have been removed]