[extract] During the 1980’s much was written about the inadequacies of the Australian fraudulent and reckless trading provisions contained in sections 556 and 557 of the Companies Code and later sections 592 and 593 of the Corporations Law.
These inadequacies were not lost on the Government and whilst the introduction of the National companies scheme in 1990 did not effect any reforms to the defaulting officer provisions, as they have commonly become known, over a six year period a series of committees was established to examine both the adequacy of the laws relating to insolvency and the regulation of directors. Subsequently the Corporate Law Reform Act 1992 enacted, amongst other reforms, significant changes to the defaulting officer provisions. These amendments took effect from 24 June, 1993.
"Insolvent Trading - Recent Developments in Australia, New Zealand and South Africa,"
Bond Law Review:
1, Article 1.
Available at: http://epublications.bond.edu.au/blr/vol6/iss1/1