Sons of Gwalia Bill - IPA member comment invited

IPA's submission to the Senate Committee has been made. We indicate support for the Bill - and refer to the recent decision in ION Limited, in the matter of ION Limited (Subject to Deed of Company Arrangement) [2010] FCA 1119, which illustrates the difficulties for a liquidator in managing large shareholder claims based on a company’s alleged misrepresentations, and the need for the courts to intervene using existing law in order to facilitate the progress of those administrations.

At the same time, we raise a number of drafting issues with the Bill in order to ensure it adequately addresses the issues that practitioner will need to address.

The Senate Standing Committee on Legal and Constitutional Affairs has invited submissions on the Corporations Amendment (Sons of Gwalia) Bill 2010.

The Bill was introduced in the last Parliament and was referred to this Committee for inquiry and report. However, following the prorogation of the parliament, the Bill lapsed and the Committee provided a brief report on the Bill. On 30 September 2010, following the re-introduction of the Bill into the parliament, the Senate referred the provisions of the Bill for inquiry and report by 18 November 2010.

The Committee invites written submissions to its inquiry by 27 October 2010.

The Bill, Explanatory Memorandum and Second Reading Speech are on the Committee's website. Hard copies are also available from the secretariat.

The IPA will be making a submission; any member comment is invited.