Very welcome changes to the way in which insolvencies are publicised will come into effect from the 1st of July. Gone is the need for those affected to buy the right paper on the right day in the right place to find out what is happening. Gone is the need to pay the cost of expensive advertising in more than one paper if the company traded nationally.
Current requirements to advertise such notices in the print media and Business Gazette will be replaced with the new online publishing regime. So, as from the start date creditors and others can access the website in real time and from anywhere.
Parties affected by this initiative will be largely registered liquidators and solicitors. However any stakeholders with an interest in corporate insolvency will now have the convenience of searching for such information online.
Preliminary information from the Australian Securities and Investments Commission (ASIC) suggests that advertising on line will be cost effective as well as beneficial to stakeholders.
Registered liquidators will need to publish notices of appointments, meetings, dividends and disclaimers. Solicitors will be required to publish information pertaining to a client seeking to commence an application to wind up a company.
Existing obligations regarding hard copy of all relevant notices to creditors will remain.
ASIC will be communicating to parties concerned prior to this regime coming into effect. Links to the website and temporary logins and passwords will be generated and emailed. Payment for publishing such notices will be only acceptable via VISA and Mastercard.
To get ready for this inevitable change, it is timely and recommendable to review all precedent documents and procedures.