Publishing winding up notices — avoiding duplication of costs
Changes to the way most corporate insolvency notices have to be published came into effect on 1 July 2012. The Supreme Court of New South Wales has provided some guidance about how parties can avoid the cost of having to publish notice of any application to wind up a company on both the new ASIC website and in the print media
Changes requiring most corporate insolvency notices to be published on a new website run by the Australian Securities and Investments Commission (ASIC) came into effect on 1 July 2012.
Details of the changes are discussed in our recent article.
As discussed in our previous article, the introduction of the new website publication requirements has not formally altered the requirement under Federal Court and Supreme Court Rules, requiring print media publication of notices of winding up applications. This raises the issue of duplication of costs for publication of winding up notices as they would need to be published both on the website in return for payment of a fee and in the print media.
To address this issue, the Registry of the Supreme Court of New South Wales has indicated that, subject to any future determination of the issue by the Court, notice of a winding up application does not need to be published in a daily newspaper, provided that any winding up application filed with the Supreme Court is supported by an affidavit that proves that notice of the application has been published on the ASIC website and requests that the requirements of Rule 5.6 of the Supreme Court (Corporations) Rules 1999 (NSW) be dispensed with.
The issue is likely to be clarified further in due course through determination by the Court and legislative amendments to the Federal Court and Supreme Court Rules.
If you would like further information or have any specific questions about the changes, please contact us.