developments in deeds of company arrangement - DibbsBarker

The Court was also satisfied that the company’s execution of the DOCA was consistentwith the objects of the Voluntary Administration regime established in Part 5.3 of theCorporations Act. The object of a DOCA is to provide for the business, property andaffairs of an insolvent company to be administered in a way that maximised the chancesof the company continuing in existence. The situation before the Court was found to beexemplary of this purpose.The Court also gave significance to Regulatory Guide 82, released by ASIC in May 2005as a guide for Administrators where a proposed DOCA or variation of a DOCA involvesa creditors’ trust. 20The Court noted that the liquidators had complied with the regulatoryguide, indicating the bona fides of the recommendation to accept the proposal in thecreditors’ best interests.5. ConclusionThe recent case law demonstrates a number of lessons from those contemplatingutilisation of the DOCA regime.First, the decisions in Maylord and Storm Financial provide timely reminders of thepotential for abuse of the DOCA regime by company officers seeking to avoid liability, orto oppress the interest of individual creditors. This is one area of insolvency law that maybe targeted for parliamentary review in coming years.20 Supra, n 9.11899717 v1 Brisbane 05 08 0921