Minister for Superannuation and Corporate Law
3 December 2007 - 8 June 2009
CAMAC Report On Sons Of Gwalia
Senator Nick Sherry, Minister for Superannuation and Corporate Law, has today acknowledged the release of the report of the Corporations and Markets Advisory Committee (CAMAC) on the implications of the High Court decision in Sons of Gwalia v Margaretic  HCA 1 (Sons of Gwalia).
The Sons of Gwalia decision reinterpreted a longstanding provision of the law, making it easier for shareholders to recover funds in insolvency proceedings where they were misled in the lead-up to a corporate collapse. The previous Government sought advice from CAMAC on the effects of the Sons of Gwalia decision in February, 2007.
"The Government recognises that the development of a response to the decision was a challenge given widely divergent views expressed by the business community. CAMAC has provided a carefully considered analysis of the Sons of Gwalia decision," Minister Sherry said.
The CAMAC report recommends that the current law, as reflected in the Sons of Gwalia decision, be retained and thus has important ramifications for shareholders, financiers, bankers, general creditors and insolvency practitioners.
"The Government is committed to ensuring that company laws afford optimal protection to investors and creditors. This includes the provision of a fair and efficient insolvency regime which addresses the consequences of business failure; treats creditors, investors and employees fairly and distributes assets of insolvent businesses among stakeholders in the fairest possible way.""The Rudd Government believes Australian insolvency laws are among the best in the world and also appreciates that this matter is of considerable importance to the business community. The Government will closely examine CAMAC's recommendations for responding to the High Court decision in Sons of Gwalia," Minister Sherry said
29 January 2009