EXPLANATORY STATEMENT

Proclamation

Issued by the authority of the Minister for Superannuation and Corporate Law

Cross-Border Insolvency Act 2008

Subsection 2(1) of the Cross-Border Insolvency Act 2008 (the Act) provides that Parts 2, 3 and 4 of the Act commence on a single day to be fixed by Proclamation.  However, if Parts 2, 3 or 4 do not commence within the period of 6 months beginning on the day on which the Act receives the Royal Assent, they commence on the first day after the end of that period.  The Act received the Royal Assent on 26 May 2008. 

The Act gives effect to the Model Law on Cross-Border Insolvency (the Model Law) adopted by the United Nations Commission on International Trade Law (UNCITRAL).  Implementation of the Model Law aims to facilitate cross-border economic activity by reducing the risks, complexities and costs associated with recovering funds and rehabilitating businesses in the event of the external administration of trans-national businesses.

The purpose of the Proclamation is to fix 1 July 2008 as the day on which Parts 2, 3 and 4 of the Act will commence.  Part 1 of the Act commenced on the day on which the Act received Royal Assent and Schedule 1 to the Act commences at the same time as Parts 2, 3 and 4.  The Proclamation specifies 1 July 2008 as the date of commencement in order to enable related regulations to be in place immediately following the commencement of the Parts 2, 3 and 4.

No consultation occurred in respect of the proposed instrument. Consultation was neither necessary nor appropriate within the meaning of section 18 of the Legislative Instruments Act 2003, the instrument being minor and machinery in nature.

The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.