Promoting an optimal corporate rescue culture in Australia: The role and efficacy of the voluntary administration regime

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2022

Authors

Harris, Jason Robert

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Brown, David
Symes, Christopher

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Thesis

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Voluntary administration was introduced in Australian corporate insolvency law almost 30 years ago as a procedure for restructuring the debts of companies that are in financial distress in order to attempt to save the business, a process known as ‘corporate rescue’. At one time, voluntary administration was the most popular form of corporate insolvency appointment in Australia, but in recent years the number of voluntary administrations has declined substantially. Concerns have been expressed about its efficacy and whether law reform is needed to better facilitate corporate rescues in Australia. This thesis considers whether Voluntary Administration, under Part 5.3A of the Corporations Act has achieved its stated purpose and whether it promotes an optimal corporate rescue culture in Australia. The thesis includes an empirical study of the first 25 years of voluntary administration to assist in identifying what features of voluntary administration, if any, may hinder its ability to achieve its statutory objectives and facilitate corporate rescues in Australia. The thesis argues that voluntary administration has largely achieved its stated statutory purposes and provides a useful and broadly supported tool for corporate rescue in Australia, but not an optimal framework for corporate rescue. The thesis suggests several potential law reform measures based on the empirical data that could enable the procedure to better promote an optimal corporate rescue culture in Australia.

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Adelaide Law School

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Thesis (Ph.D.) -- University of Adelaide, Adelaide Law School, 2022

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This thesis is currently under embargo and not available.

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