1.    Company name change
External administrators will be able to apply to ASIC to change the name of a company without having to hold a members meeting, effectively "by-passing" the need for full cooperation by all members. Furthermore, if a company's name has been changed during or 6 months prior to the external administration, then both the former and current name must be used in all public documents, thereby providing a further protection from "phoenix" activities.

      2.      Electronic distribution of information
Some notices and other information will be able to be distributed electronically, in turn providing efficiency, significant cost savings and greener practice for insolvency administration. 

      3.      Independence and remuneration
There will be increased scrutiny of external administrators' independence and remuneration.

      4.      Voluntary administration
The time periods for holding of creditors meetings in voluntary administrations have been extended to 8 business days from commencement for the first meeting of creditors and 25 or 30 business days from commencement for the second meeting of creditors, subject to public holidays.

The statutory maximum adjournment period has been amended from 60 to 45 business days from the second meeting of creditors. This can be further extended by the Court. 

The time period for the first meeting of creditors has been changed from 2 to 5 business days notice. 

      5.      Deed of Company Arrangement (DOCA)
The DOCA must be executed within 15 business days of the relevant creditors' meeting approving the DOCA proposal. The statutory priority for employee entitlements (or those who advance funds on account of employee entitlements) must be preserved unless the affected employee creditors agree or the Court approves the change.

As endorsed in previous Court rulings, a creditor voting in favour of DOCA does not release a guarantee held in respect of the company's debt.

      6.      Liquidations
A company can be placed into a creditors' voluntary liquidation immediately after the relevant general meeting of members granting consent to short notice is obtained from the members of a company. A meeting of creditors must be convened within 11 days of the commencement of the voluntary winding up.

The limit for the compromise of debts by a liquidator without the approval of a committee of inspection or the Court has increased from $20,000 to $100,000 

      7.      ASIC matters
The reforms provide ASIC with greater powers to investigate liquidators as well as the ability to cancel the registration of liquidators in certain circumstances.

Conclusion
The above is not a complete list of all the changes made, however, the essence of the reforms and the key changes are noted. 

Please note that the advice in this communication is general advice only and you should not rely on this advice unless you obtain legal advice specific to your own requirements. Should you have any questions in this regard please feel free to contact Rosendorff Lawyers.