Sign In
New User? Sign Up
otmushrooms · Unpaid Mushrooms
? Already a member? Sign in to Yahoo!7

Yahoo!7 Groups Tips

Did you know...
You can set the sort order of messages. Just click on the link in the date column. Your preferences will be remembered, so you don't have to do it again when you return.

Messages

  Messages Help
Advanced
AFR Letter - "Creditors want fairer insolvency process"   Message List  
Reply | Forward Message #576 of 578 |
Re: AFR Letter - "Creditors want fairer insolvency process"

--- In otmushrooms@..., nick4mony <no_reply@...> wrote:
>
> I've successfully submitted a letter to the AFR.
>

I think that while we've got the chance, others can also write letters,
focussing on different insolvency issues.

I purposely chose 2-3 core issues and stayed away from other issues, in the
interests of conciseness.

Ideas that others could develop:
* expand my code "more prescriptive requirements" => creditors must be paid in
full in a DoCA, and must stay in a DoCA until creditors have physically been
paid.
* Destruction of business value: if this problem was removed (eg if suppliers &
major customers were still tied to their contracts), it would remove a major
incentive for insolvent trading.
* For employees: do you know that GEERS no longer pays out in a DoCA situation?
They only pay in cases of liquidation (if a DoCA proceeds to a liquidation,
they'll pay but payments MAY be reduced).
* For employees: There is Schedule 8A, but I'm still not convinced, even today,
that a DoCA is compelled to follow it (but a liquidation must). Schedule 8A
dictates the order/priority of payments amongst the various classes of creditor.
* For employees: absolute requirement on administrators to produce group
certificates (this is a problem in a surprising number of cases).
* Conduct business electronically to save costs.
* Attending meetings by telephone: make this an absolute right (this was not
possible for Mobilesoft meetings).
* Creditors have no feasible way of putting forth alternative DoCA proposals.
* Most creditors have no feasible way of finding out what's brewing (in terms
of the DoCA/negotiations between major creditors, customers, and the directors).
* Variation to round-robin idea: that ASIC chooses 3 sets of professionals, and
creditors choose one by popular vote, with fixed renumeration (eg $20K + 1% of
debt) for the losers.
* Andrew Heard's letter (April 29): rebuttal - allowing directors to run a
company in administration seems a bit unwise.

Regards,

Nick.




Thu Apr 30, 2009 2:28 pm

nick4mony
Offline Offline

Forward
Message #576 of 578 |
Expand Messages Author Sort by Date

I've successfully submitted a letter to the AFR. Background: An article in the Australian Financial Review (April 28, front page) talked about ASIC's...
nick4mony
Offline
Apr 30, 2009
1:40 pm

... I think that while we've got the chance, others can also write letters, focussing on different insolvency issues. I purposely chose 2-3 core issues and...
nick4mony
Offline
Apr 30, 2009
2:29 pm

Solar went into receivership on Monday and they are all dismissed without entitlements. By Friday some will be choosen to stay in for another 3 months...
Paul Davis
p.s.davis@...
Send Email
Sep 8, 2009
8:21 pm

Copyright © 2009 Yahoo! Australia & NZ Pty Ltd. All rights reserved.
Privacy Policy - Terms of Service - Guidelines - Help