A Law and Economics Evaluation of Australian Legislation on Employee Entitlements Protection in the time of Corporate Insolvency |

Assignment Requirements

Rewriting the research paper that I’ve attached and include more additional update in regards to the topic

Final Research Project

A Law and Economics Evaluation of Australian Legislative and Policy Protection Mechanisms of

unpaid workers entitlements due to company insolvency

Jing Zhi (Aaron) Lau 22891390

11/5/2012

Contents

Abstract …………………………………………………………………………………………………………………………. 2

Introduction ……………………………………………………………………………………………………………………. 4

Part 1: Background to Protections for Employee Entitlements & Insolvency law ……………………. 6

1.1 Corporations Act 556 and Part 5.8A ………………………………………………………………………. 8

1.2 Taxation Amendment (2012 Measures No. 2) Bill 2012 …………………………………………… 9

1.3 GEERS ………………………………………………………………………………………………………………. 10

Part 2. Literature review …………………………………………………………………………………………………. 12

Part 4. Law and Economics Evaluation ……………………………………………………………………………… 17

4.1 “Does the legal rule create incentives for the relevant individuals or firms to behave

efficiently? …………………………………………………………………………………………………………….. 19

4.2 Does the legal rule efficiently allocate risk among the relevant individuals or firms?” .. 23

Part 5. Alternatives to current legislation …………………………………………………………………………. 26

5.1 Reverse onus of proof ……………………………………………………………………………………….. 26

5.2 Civil Penalties vs. Criminal Penalties? …………………………………………………………………… 27

5.3 Limitations of Paper and Future Directions for Research ……………………………………….. 27

Conclusion ……………………………………………………………………………………………………………………. 29