On 23 April 2010, the Minister for Financial Services, Superannuation and Corporate Law announced released an Exposure Draft in respect of the Government’s decision to reverse the effect of the High Court’s decision in Sons of Gwalia v Margaretic.
Shareholders will no longer be able to rank as creditors with ordinary unsecured creditors in corporate insolvencies. The Bill also reforms shareholder voting to streamline external administrations and clarifies the position of shareholders bringing claims for damages.
Submissions close on 18 May 2010.
Read more in the media release from the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen.