Australian Bankruptcy Law History

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Australian Bankruptcy Law Contents Executive Summary 2 History of Australian Bankruptcy Law 3 The Beginning 3 The English Root 3 The Adaption and the Bankruptcy Act of 1966 5 The Debate 6 The Reform 6 For the Change 6 Against the Change 6 Conclusions & Recommendations 7 Citations & References 8 Executive Summary The purpose of this report is to examine the history, and the development of the Australian Bankruptcy Law. Through reviewing historical information, the origins of the current Bankruptcy Law are explored. Furthermore, the development of Corporate Insolvency Laws in Australia from 1901 through to 2001 Corporations Act is studied. The last part of this report reviews the ongoing debate on the…show more content…
By 1571, the “Statue of Elizabeth” followed, and confined the practicing of the act solely to tradesmen as well as proclaiming bankruptcy as a legal status. Furthermore, in the same year, “Fraudulent Conveyances Act” was charted which rendered transactions conducted with the intent to defraud or delay creditors, were to be void (Bathurst, 2014). In other words, transfer of fund to a trustee as such or intentional hiding the amount beyond the reach of the reach of the creditors, is considered unlawful, therefore voided. This concept was the seed to the section 121 of the Bankruptcy Act 1966. As the initial act was sought out to promote merchants and tradesmen to conduct business on British shores, nothing of the act was focussed on rehabilitating the debtor back to society. Of many punishments, losing an ear for failing to pay back a sum would have to be one of the harshest penalties, followed by imprisonment for life. It was only in 1705 when insolvent tradesmen were allowed to be discharged upon obtaining the approval from 4 out of 5 creditors. While it may seem trivial, it was the beginning of the shift towards the debtors’ rehab. The bankruptcy legislations required a reform as the number of bankruptcies increased due to the increase in commercialisation and trades conducted through credits. The reforms occurred throughout the early 19th century beginning with the
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