Legal and accounting regulatory framework for corporate groups: implications for insolvency in group operations

Wyatt, Anne and Mason, Rosalind (1998) Legal and accounting regulatory framework for corporate groups: implications for insolvency in group operations. Company and Securities Law Journal, 16 (6). pp. 424-450. ISSN 0729-2775

Abstract

This article takes a cross-disciplinary approach to examine how the current legal and accounting regulatory frameworks present problems for an equitable, orderly administration
of the insolvent company within a corporate group. It is proposed that the Australian legal and accounting frameworks do not provide specific, systematic solutions for ongoing operation of corporate groups and also their administration in liquidation. Further, that corporate, legal and accounting regulation are closely intertwined but lack consonance. The discrepancies between legal and accounting regulation have an adverse impact on the
relevance and usefulness of financial information, particularly when insolvency strikes. Suggested reforms include explicit recognition of corporate groups in the Corporations Law, joint development of common precepts within law and accounting regulation, and statutory
provisions facilitating a group solution in the event of insolvency.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version due to publisher copyright policy
Faculty / Department / School: Historic - Faculty of Business - Department of Law
Date Deposited: 30 Nov 2007 11:47
Last Modified: 03 Jul 2013 00:18
Uncontrolled Keywords: bankruptcy; insolvent; Australia
Fields of Research : 18 Law and Legal Studies > 1801 Law > 180109 Corporations and Associations Law
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150101 Accounting Theory and Standards
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970118 Expanding Knowledge in Law and Legal Studies
URI: http://eprints.usq.edu.au/id/eprint/13690

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