Corporations (Insolvency Practice Schedule) Delegation 2019

Overview

The Corporations (Insolvency Practice Schedule) Delegation 2019I, enacted in 2019, was introduced to address the need for a more streamlined and efficient delegation process within the Australian Securities and Investments Commission (ASIC) for appointments to insolvency committees under the Corporations Act 2001. The instrument was made under the authority of the Assistant Treasurer, Stuart Robert, pursuant to subsection 50-10(4) of Schedule 2 to the Corporations Act 2001. The primary objective of this delegation is to empower specific staff members within ASIC's Chief Legal Office to appoint individuals to relevant committees, thereby enhancing operational efficiency and ensuring that qualified personnel are appointed to these critical roles. This delegation aims to provide flexibility and responsiveness in the appointment process, ensuring that the insolvency practice schedule is managed effectively and in accordance with the statutory requirements.

Scope and Application

This delegation under the Corporations (Insolvency Practice Schedule) Delegation 2019I, signed by Stuart Robert, Assistant Treasurer, pertains to the powers associated with the appointment of individuals to committees as outlined in subsection 50-10(1) of Schedule 2 to the Corporations Act 2001. The delegation revokes all previous delegations made under subsection 50-10(4) of Schedule 2 to the Corporations Act 2001. Specifically, the Assistant Treasurer delegates these powers to certain staff members within the Australian Securities and Investments Commission (ASIC) who either hold or are acting in positions equivalent to a Senior Executive Service (SES) employee or a senior staff member, as defined in subsection 5(1) of the Australian Securities and Investments Commission Act 2001. The delegation is effective from 2 June 2019 until 30 June 2019 for SES employees and acting SES employees within ASIC’s Chief Legal Office, and from 1 July 2019 for senior staff members. The Assistant Treasurer also directs that for appointments made between 2 June 2019 and 2 June 2020, the appointee must be chosen from a specific selection pool of individuals, while for appointments made between 2 June 2019 and 2 June 2021, the selection pool is slightly reduced. This instrument commenced on 2 June 2019.

Key Provisions

The main operative sections of the Corporations (Insolvency Practice Schedule) Delegation 2019I involve the delegation of certain powers by Stuart Robert, the Assistant Treasurer, to specific staff members within the Australian Securities and Investments Commission (ASIC). Section (2) revokes all previous delegations made under subsection 50-10(4) of Schedule 2 to the Corporations Act 2001. This means that any prior delegations made under this subsection are no longer valid. Section (2) then delegates the power to appoint a person to a committee, as mentioned in subsection 50-10(1) of Schedule 2 to the Corporations Act 2001, to certain staff members within ASIC's Chief Legal Office. These staff members include SES employees or acting SES employees, or those who hold, or are acting in, an office or position that is equivalent to an SES employee. This delegation is effective from 2 June 2019 until 30 June 2019. The Act imposes obligations on the specified staff members within ASIC's Chief Legal Office who are delegated these powers. They are required to appoint a person to a committee as mentioned in subsection 50-10(1) of Schedule 2 to the Corporations Act 2001. This appointment must be made in accordance with the delegation and within the specified timeframes. Furthermore, the Act directs that for appointments made under this delegation on or after 2 June 2019 and before 2 June 2020, the person appointed must be chosen from a specific selection pool. This pool includes Mr Michael Gronow, Mr David Brown, Mr Cameron McKenzie, Mr David Miller, Ms Wendy Leegel, Mr Simon Wallace-Smith, Ms Clare Lethlean, Mr Stewart Maiden, and Mr Leon Zwier. For appointments made on or after 2 June 2019 and before 2 June 2021, the person appointed must be chosen from a different selection pool, which includes Mr Michael Gronow, Mr David Brown, Mr Cameron McKenzie, and Mr David Miller. In terms of offences, penalties, or consequences for breach, the Act does not explicitly outline any specific offences or penalties. However, it is important to note that any failure to comply with the obligations imposed by the Act could potentially lead to legal consequences. For instance, if a staff member fails to make an appointment in accordance with the delegation, it could result in legal action being taken against them. Additionally, if a person is appointed who is not from the specified selection pool, it could also lead to legal consequences. The maximum penalties for such breaches are not stated in the Act, but they could potentially include fines, imprisonment, or both, depending on the severity of the breach and the applicable laws.