Corporations Act cancelled within 10 years before making the application, other than in response to a written request by the applicant to have the registration cancelled In order to register an applicant a committee must be satisfied that the applicant is not disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001, or under a law of an external Territory or a law of a foreign country There is currently no corresponding law. In order to register an applicant a committee must be satisfied that the applicant is a fit and proper person. There is currently no corresponding law. . In order to be registered as a trustee the applicant must produce evidence in writing to the Inspector-General that the applicant has taken out: adequate and appropriate professional indemnity insurance; and adequate and appropriate fidelity insurance against the liabilities that the applicant may incur working as a registered trustee. While the committee must be satisfied that that applicant will take out insurance against liabilities that the applicant may incur working as a trustee there is no requirement for the applicant to produce evidence in writing about the status of their insurance to the Inspector-General. The Insolvency Practice Rules may provide for conditions to be placed on all registered trustees or a class of registered trustees. Conditions can be placed on an individual’s registration by a registration committee or a committee convened to consider the involuntary termination of a trustee’s registration. The committee that the convenes to consider applications for changes of conditions must consist of: the Inspector-General; and a registered trustee chosen by a prescribe body; and a person appointed by the Minister. The committee that the convenes to consider applications for change of conditions on a trustee must consist of: the Inspector-General; and an APS employee; and a registered trustee chosen by the Insolvency Practitioners’ Association (who are now known as ARITA). In to renew their registration a trustee must produce evidence to the Inspector-General regarding their insurance status. There is no requirement that trustees produce evidence of their insurance status in order to be reregistered. General General
A person who makes a false representation that they are a trustee will have committed an offence is currently no corresponding offence. A registered trustee must maintain: adequate and appropriate indemnity insurance; and adequate and appropriate fidelity insurance; against the liabilities that the trustee may working as a registered trustee. The Inspector-General may, by legislative instrument, determine what constitutes adequate and appropriate insurance. A registration committee must be satisfied that an applicant will take out insurance against liabilities that the applicant may incur working as a trustee before a trustee can be registered but the Bankruptcy Act does not specify what type of insurance must be obtained. A registered trustee who fails to comply with his/her insurance requirements may have committed an offence. There is no offence provision connected with the failure by a trustee to comply with their insurance requirements. Trustees will be required to inform the Inspector-General if an expanded number of events happen (for example if they are disqualified from managing corporations). A trustee is required to notify the Inspector-General if they are convicted of an offence involving or dishonesty or if they enter into an insolvency administration. The Inspector-General will be able to cancel a trustee’s registration without first referring it to a committee under a number of prescribed circumstances. The Inspector-General can only cancel a trustee’s registration involuntarily if they are giving effect to the decision of a committee. The Inspector-General will be able to suspend a trustee’s registration under a number of prescribed circumstances. A disciplinary committee can decide that a trustee’s registration be cancelled. Detailed explanation of new law Working cooperatively with ASIC 1.9 The Inspector-General must work cooperatively with the Inspector-General in Bankruptcy in relation to persons who are, have been or may become both registered trustees under the Bankruptcy Act and registered liquidators under the Corporations Act. [Schedule 2 Insolvency Practice Schedule (Bankruptcy), Part 2, Division 10, section 10-5)
(6A)) continue to apply in relation to the remuneration of a trustee of an estate of a bankrupt who is appointed, or who consents to act, before the commencement day. [Schedule 1, Part 3, Division 3, Subdivision C, section 130] Sections 60-20 and 60-25 of the Schedule apply in relation to a trustee of a regulated debtor’s estate under ongoing administration, whether or not the trustee is appointed, or consents to act, before, on or after the commencement day. However, those sections do not apply in relation to arrangements made before the commencement day. Despite the repeal of section 165 of the old Act by the Schedule, section 165 will continue to apply in relation to arrangements made before the commencement day. [Schedule 1, Part 3, Division 3, Subdivision C, Sections 131] Section 60-26 of the Schedule applies in relation to a trustee of a regulated debtor’s estate under ongoing administration, whether or not the trustee is appointed, or consents to act, before, on or after the commencement day except where payments are received before the commencement day. Despite the repeal of section 162 of the old Act by the Schedule, subsection 162(6) continues to apply in relation to payments received before the commencement day. [Schedule 1, Part 3, Division 3, Subdivision C, Section 132] Section 60-30 of the Schedule applies in relation to a trustee of a regulated debtors’ estate if both the former and the new trustee mentioned in the section are appointed, or consent to act, on or after the commencement day. [Schedule 1, Part 3, Division 3, Subdivision C, subsection 133(1)] If: a person ceases to be the trustee of a regulated debtor’s estate and another person becomes the new trustee of the estate; and both those persons were appointed, or consented to act, as trustee of the estate before the commencement day; then despite the repeal of section 164 of the old Act by this Schedule, that section continues to apply in relation to the remuneration of those trustees to the extent that the section would have applied in relation to those trustees if it had not been repealed. [Schedule 1, Part 3, Division 3, Subdivision C, subsection 133(2)] If: a person (the former trustee) ceases to be the trustee of a regulated debtor’s estate and another person (the new trustee) becomes the new trustee of the estate; and
the complexity (or otherwise) of the work performed or likely to be performed; the extent (if any) to the external administrator was, or is likely to be required to deal with extraordinary issues; the extent (if any) to which the external administrator was, or is likely to be, required to accept a higher level of risk or responsibility than is usually the case; the value and nature of any property dealt with, or likely to be dealt with by the external administrator; the number, attributes and conduct, or the likely number, attributes and conduct of the creditors; if the remuneration is worked out wholly or partly on a basis – the time properly taken, or is likely to be properly taken, by the external administrator in performing the work; whether the external administrator was, or is likely to be required to deal with one or more received or one or more receivers and managers; if a review has been undertaken by another registered liquidator into a matter relating to an external administration and that matter is, or includes, remuneration of the external administrator, the contents of the report on the review; and any other relevant matters.[Schedule 2, item 2, Schedule 2 to the Act, Part 3, section 60-25] The maximum default amount that an external administrator may receive is $5,000 (exclusive of GST) and indexed with reference to increases in the CPI. [Schedule 2, item 2, Schedule 2 to the Act, Part 3, section 60-30] A provisional liquidator is entitled to receive such remuneration, by way of percentage or otherwise as is: determined by the or if there is no determination by the Court and there is a committee of inspection, as agreed between the liquidator and the committee of inspection; or if there is no determination by the Court and no agreement between the liquidator and the committee of inspection, then by resolution of the creditors.[Schedule 2, item 2, Schedule 2 to the Act, Part 3, section 60-16] If ASIC orders that an abandoned company be wound up under section 489EA, ASIC may determine the remuneration that the liquidator