Miracle workers or ambulance chasers? The role of administrators in the Part 5.3A process

Anderson, Colin (2004) Miracle workers or ambulance chasers? The role of administrators in the Part 5.3A process. Insolvency Law Journal, 12 (4). pp. 238-255. ISSN 1039-3293

Abstract

This article considers the role of the administrator under a voluntary administration and also briefly under a deed of company arrangement. There has been some criticism that the procedure does not permit proper standards to apply to administrators and this article seeks to examine that question and, in doing so, rejects some of that criticism. The article examines how an administrator may be removed by the court as well as outlining the duties of the administrator under the legislation. The issue of the fiduciary duties of the administrator is also considered. As a result of this discussion it is argued that with proper supervision by ASIC, as the registering authority for administrators, the current method of appointment of administrators by directors should remain. However, it is suggested that the administrator should not have a casting vote in relation to deadlock between the number and value of creditors as this unnecessarily reduces the administrator’s perceived independence. The article concludes by providing a broader policy analysis which focuses on why an independent administrator is a preferred option to the North American model of debtor in possession and how this may be consistent with economic efficiency.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Depositing User: ePrints Administrator
Faculty / Department / School: Historic - Faculty of Business - Department of Law
Date Deposited: 06 Mar 2010 00:53
Last Modified: 02 Jul 2013 23:41
Uncontrolled Keywords: voluntary administration, Part 5.3A, deed of company arrangement
Fields of Research (FOR2008): 18 Law and Legal Studies > 1801 Law > 180109 Corporations and Associations Law
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
Socio-Economic Objective (SEO2008): C Society > 94 Law, Politics and Community Services > 9404 Justice and the Law > 940406 Legal Processes
URI: http://eprints.usq.edu.au/id/eprint/7005

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