How Do Australian Insolvency Laws Regulate Companies?
Financial laws around the world can vary from those found in the U.S. In Australia, insolvency laws regulate the affairs of a company that can no longer pay its financial obligations. The most common procedures in the country for handling insolvency are voluntary administration, liquidation and receivership.
Governed by the Corporations Act of 2001, Australian insolvency laws primarily exist to establish and maintain a balance between the interests of a company that has become insolvent, its creditors and the general community that could also be affected by the company’s financial difficulties. Australian law uses the term "insolvency" to refer to companies and bankruptcy in reference to individuals.