Govt to review Sons of Gwalia ruling

Federal Parliamentary Secretary to the Treasurer, Chris Pearce will review the recent High Court ruling that gives shareholders parity with creditors in corporate bankruptcies.

Refer to our earlier article for details of that decision.

Many believe the controversial decision, which gives shareholders equal rights with creditors if they can prove they were mislead, will cause a red tape nightmare.

The Insolvency Practitioners Association of Australia has demanded that the Government restore the previous arrangement.

Chris Pearce has referred the court’s decision to the Corporations and Markets Advisory Committee for “consideration and advice”.

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