Corporations (Insolvency Practice Schedule) Amendment (2024 Measures No. 2) Delegations 2024

Overview

The Corporations (Insolvency Practice Schedule) Amendment (2024 Measures No. 2) Delegations 2024I, enacted by Stephen Jones, the Assistant Treasurer and Minister for Financial Services, amends the Corporations (Insolvency Practice Schedule) Delegations 2021. This instrument was introduced to address the need for updated delegations within the insolvency practice framework as part of the ongoing measures to ensure effective governance and oversight in insolvency matters. The delegations outlined in this legislation are made under the authority of the Corporations Act 2001, ensuring alignment with the legislative framework governing corporate insolvency practices. The amendments include the substitution and repeal of certain delegations, as well as the introduction of new delegations to enhance the efficiency and effectiveness of insolvency practice within Australia. This legislative instrument aims to provide clear and updated guidelines for the delegation of authority within the insolvency practice schedule, ensuring that the insolvency regime remains robust and responsive to the needs of stakeholders.

Scope and Application

The Corporations (Insolvency Practice Schedule) Amendment (2024 Measures No. 2) Delegations 2024 applies to the delegations of authority under the Corporations Act 2001, specifically affecting the Insolvency Practice Schedule. It impacts the individuals authorised to act in certain capacities related to insolvency practice, with changes to the list of authorised persons and their review dates. This legislative instrument operates within the Commonwealth jurisdiction, as it is made under the authority of the Corporations Act 2001, and applies to the delegations of authority within that act. The amendments do not explicitly state exclusions or exemptions, but the review dates specified suggest that the authority granted may be subject to periodic reassessment. Subordinate instruments may further define or extend the application of these delegations, although such details are not provided in the text.

Key Provisions

The Corporations (Insolvency Practice Schedule) Amendment (2024 Measures No. 2) Delegations 2024 (the "Instrument") amends the Corporations (Insolvency Practice Schedule) Delegations 2021 by repealing and substituting certain paragraphs and notes. Specifically, paragraph 7(2)(c) is repealed and replaced with Ms Donna Boyce (paragraph 1), Dr Jason Harris is inserted as paragraph 7(2)(eaa) (paragraph 2), paragraph 7(2)(f) is repealed and replaced with Ms Orla McCoy (paragraph 3), and paragraph 7(2)(j) is repealed (paragraph 4). Furthermore, note 1 to subsection 7(2) is repealed and replaced with a note specifying that certain paragraphs are to be reviewed before 1 March 2027 (paragraph 5), and note 2 to subsection 7(2) is repealed and replaced with a note specifying that certain paragraphs are to be reviewed before 1 November 2027 (paragraph 6). The Instrument will commence on the day after it is registered. The Instrument imposes obligations on the parties it governs, which are primarily the individuals who are appointed or substituted as authorised insolvency practitioners. These individuals are required to comply with the terms and conditions set out in the Corporations Act 2001 and the Corporations Regulations 2001, as well as any other relevant laws and regulations. They are also required to maintain appropriate professional indemnity insurance and to comply with any orders or directions issued by the Australian Securities and Investments Commission (ASIC) or the courts. Failure to comply with the requirements of the Instrument or the Corporations Act 2001 may result in civil or criminal penalties. For example, an individual who is not authorised to practice as an insolvency practitioner may be liable to a penalty of up to $22,200 for each day that they continue to practice without authorisation. Similarly, an individual who engages in conduct that is dishonourable or unprofessional may be subject to disciplinary action by the relevant professional body, or may be liable to a penalty of up to $1,100,000 under the Corporations Act 2001. In addition, an individual who is convicted of a criminal offence may be subject to imprisonment, fines, or both. The maximum penalties for breaches of the Instrument or the Corporations Act 2001 depend on the nature and severity of the offence. For example, an individual who is convicted of a serious offence, such as fraud or forgery, may be subject to a maximum penalty of up to 10 years imprisonment and/or a fine of up to $222,000. Similarly, a body corporate that is convicted of a serious offence may be subject to a maximum penalty of up to $11,100,000. However, the maximum penalties for less serious offences are generally lower, and may include fines of up to $22,200 for individuals and $111,000 for body corporates.