The Minister for Superannuation and Corporate Law, Senator Nick Sherry, today introduced the Cross‑Border Insolvency Bill into Parliament. This Bill gives effect to the Model Law on Cross‑Border Insolvency developed by the United Nations Commission on International Trade Law.
"The Government is committed to improving Australia's insolvency laws. This Bill will provide effective and efficient mechanisms for dealing with cases of cross‑border insolvency," Minister Sherry said.
The Cross-Border Insolvency Bill will:
- encourage cooperation between courts and insolvency practitioners of different jurisdictions;
- clarify the rights of foreign creditors to participate in Australian insolvency proceedings; and
- allow for the coordination of insolvency proceedings across jurisdictions.
The Model Law has also been adopted by a number of Australia's major trading partners, including Japan, the United Kingdom and the United States.