Review: Insolvent Investments

Insolvent Investments, Stewart J Maiden eds., LexisNexis Butterworth, 2015, Chatswood, Australia

This is not a read for the lighthearted. But, Insolvent Investments is a fantastic specialist textbook examining the system of managed investments schemes and their related vehicles. Insolvent investments are a complex and increasingly frequent part of litigation having particularly emerged over the last 15 years. These schemes and the sheer complexity of them takes up an inordinate amount of court time and judicial contemplation.

Managed investment schemes are governed primarily by 5C of the Corporations Act but the judiciary has often been called in to fill the gaps. Specifically, the courts have had to create jurisprudence on how to wind up managed investment schemes and define the duty of officers operating pursuant to such schemes, ultimately defining their obligations as arising primarily under the act and not in a strict fiduciary role.

Insolvent Investments covers everything from directors duties to the rights of third parties and the role of creditors verses the pecking order for allocation of assets following dissolution.

Insolvency and bankruptcy are key areas of legal practise that tangentially permeate so many different areas of law that every practitioner should at least have a fundamental understanding of to allow them offer their clients a full view of their obligations and options.

At the end of the day, if this is not your specialist area of practise, then you will need to consult a specialist. However, to consult that expert on a somewhat level pegging, this book certainly does take you a long way to getting there and will empower you to engage that practitioner from a level of informed knowledge, with all the power of an in-depth exploration drawing from the finest legal, academic and judicial minds dedicated to exploring this specific area of law.

This review has been written for the ACT Law Society who provided the writer with the book.
Tom Barrington-Smith is currently completing his Australian Restructuring, Insolvency &  Turnaround Association advanced certification to supplement his legal qualifications towards certification as a specialist insolvency practitioner.

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