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Sons of Gwalia : defrauded shareholders' claims in insolvency
Author(s) -
Gengatharen Rasiah
Publication year - 2008
Publication title -
international insolvency review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.125
H-Index - 7
eISSN - 1099-1107
pISSN - 1180-0518
DOI - 10.1002/iir.153
Subject(s) - insolvency , creditor , legislature , shareholder , law and economics , business , law , actuarial science , economics , political science , finance , debt , corporate governance
The recent Australian High Court decision in Sons of Gwalia v Margaretic abolished the rule that defrauded shareholders claims should be subordinated to the claims of general creditors in insolvency. This paper examines the decision, discusses its potential implications and explores whether it should be overruled through legislative amendment. Copyright © 2008 John Wiley & Sons, Ltd.