Journal article
Debts "incurred" by receivers, administrators and liquidators: The case for a harmonised construction of ss 419, 443A and 556(1)(a) of the Corporations Act
Insolvency law journal, Vol.21(1), pp.60-81
01/03/2013
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Abstract
This article analyses the inconsistent approaches taken by courts when interpreting provisions of the Corporations Act 2001 (Cth) which address debts or expenses incurred by receivers, administrators and liquidators. After reviewing the relevant, historical judicial consideration of the notion of a debt incurred, the article contends for a consistent construction of these provisions which will enable the legislation to operate as was intended, for the benefit of persons who supply goods, services or labour to companies in external administration. The article explains how and why debts can be incurred by insolvency practitioners continuing on pre-existing contracts. Specifically (and contrary to the weight of current authority), the article contends for a construction of ss 419 and 443A of the Corporations Act which renders receivers and administrators personally liable for certain entitlements of employees (eg, wages and superannuation contributions) which become due and payable by reason of the decision of a receiver or administrator to continue a pre-existing contract rather than terminate it.
Details
- Title
- Debts "incurred" by receivers, administrators and liquidators: The case for a harmonised construction of ss 419, 443A and 556(1)(a) of the Corporations Act
- Creators
- Mark Wellard (Author) - Queensland University of Technology
- Publication Details
- Insolvency law journal, Vol.21(1), pp.60-81
- Publisher
- Lawbook Co Ltd
- Identifiers
- 991013227010202368
- Copyright
- © 2024 Thomson Reuters. All rights reserved.
- Academic Unit
- Faculty of Business, Law and Arts
- Language
- English
- Resource Type
- Journal article