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In Australia, reforms to insolvency law were undertaken by the Law Reform
Commission on a General Insolvency Inquiry whose report is known as the Harmer
Report. The appointment presented the committee with an opportunity to make the
first extensive reviews of corporate insolvency law. The needs to review insolvency
law and procedures were accentuated when more companies became insolvent as a
result of economic and social changes. 95 Besides, other countries sharing common
features on insolvency law with Australia such as the UK, Canada and the United
States were also in the process of reviewing their own insolvency law. 96
Recommendations made in the Harmer Report were largely implemented in the
Corporate Law Reform Act 1992. 97
The task of reviewing the New Zealand Companies Act 1955 was first undertaken by
the Macarthur Commission in 1973. 98 The recommendations by the Commission
were based on the report submitted by the UK‟s Jenkins Committee in 1962 as well
as the Australian Uniform Companies Act 1961. 99 The proposals put forward by the
Macarthur Committee, however, were not implemented and due to the developments
in the UK and Australia at the time, the recommendations were seen as out-dated and
no longer relevant. 100
The second attempt to review the 1955 Act was made in 1989 by the appointment of
the Law Commission. The Law Commission in 1989 generally recommended that
the 1955 Act be replaced with a new Act, covering matters such as the formation,
95 Australia Law Reform Commission, General Insolvency Inquiry Report (ALRC R45 Vol 1 1988) at
[3] at 25 January
2008.
96 Ibid, at [4].
97 Andrew Keay McPherson The Law of Company Liquidation (LBC Information Services, Sydney,
1999) at 23.
98 NZLC R9 above n49 at [31].
99 Ibid.
100 Ibid.
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