In March 2020, the Federal Government introduced temporary measures to protect businesses suffering financial distress as a result of COVID-19.
Those temporary insolvency protection measures ended on 31 December 2020.
The Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) commenced on 1 January 2021. The Act inserts a new Part 5.3B into the Corporations Act 2001 (Cth) which establishes a new formal debt restructuring process for eligible companies to be supervised by a small business restructuring partner and introduces a simplified liquidation process for eligible companies.
Being a director of a corporation (whether or not an incorporated legal practice) that is under ‘restructuring’ or has made a ‘restructuring plan’, or is being wound up under the simplified liquidation process, is a ‘show cause event’.
Practitioners are reminded of their obligation to declare show cause events, by giving notice to the Society under section 68 of the Legal Profession Act 2007 (Qld) (Act) (in Form 7) within seven days of the event occurring.
If you require assistance, please call the QLS Records and Member Services team on 1300 367 757, who will direct your query to the appropriate department. Notifications can be made by email to email@example.com.
See also the QLS Proctor article, ‘Amendment to the Legal Profession Act 2007—additional suitability matters and show cause events’.