Trading or Insolvency: Risk Management and the Company Administrator Scheme
Published by Law Book Co, Australia 2000
OUT OF PRINT>>
Description
Where a company is trading on the edge of insolvency, it is important for its directors and financial officers to decide whether to try to trade out of the difficulties or to apply to wind up the company. If there is a real danger of the company slipping into insolvency the directors can appoint a voluntary administrator under Part 5.3A of the Corporations Law to control and manage the business, property and affairs of the company.
Trading or Involvency? Risk Management and the Company Administrator Scheme provides a clear rendering of Part 5.3A of the Corporations Law and its operation, so that directors in particular may understand their rights and obligations under the Part and the procedures involved in appointing a voluntary administrator.
Risk management runs as a theme through the book. The author, Ian Tunstall, sees risk management as a significant measure for company directors and executives to reduce cost and save money while protecting the company. He regards a major aspect of managing reisks to be the avoidance or prevention of insolvency.
The book analyses the powers of the courts, particularly under s 447A, and there is a chapter on the processes for handing back a restored company to its directors. A chapter also deals with changes recommended to Part 5.3A. The work also contains case studies on National TextilesLtd (involving the government’s current administrative scheme for unpaid wage earners — the Employee Entitlement Support Scheme) and Brashs group.
The focus of Trading or Insolvency? is on practical alternatives to winding up and distribution of remaining company assets to creditors and members. This book provides lawyers, accountants, directors and company administrators who are involved with companies on the brink of insolvency with a strategic introduction to the nature and operation of the voluntary administration scheme.
