The Government has reintroduced the Corporations Amendment (Sons of Gwalia) Bill 2010 into Parliament to give effect to the Government's decision to reverse the High Court's decision in Sons of Gwalia v Margaretic.

The Sons of Gwalia decision determined that, in a corporate insolvency, certain shareholder claims against a company ranked equally with the claims of other unsecured creditors. This decision went against the commonly understood order of claims in a corporate winding-up. The Bill returns the order of claims to that which existed prior to the Sons of Gwalia judgment.

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