We have previously commented on the usefulness of public examinations, both in corporate and personal insolvency matters. They are a very good way of getting information on either a very narrow point, or to conduct a sweeping investigation on a wide topic.

Recently Worrells conducted a 22 day series of public examinations of persons connected with Storm Financial Limited (in liquidation) under the provision of the Corporations Act. These examinations provided a wealth of information and insight into the affairs of Storm but we, and all observers, could not fail to notice that every witness presaged his or her reply to almost every question, even the most innocuous, with the word “privilege”.

The use of the word “privilege” in this way ensures that the reply cannot be used against the witness in any subsequent criminal proceedings or proceedings to impose a penalty. This is set out in section 597(12A) of the Corporations Act.

We have nothing against a witness claiming privilege but surely it must be possible to claim such privilege in advance so that it can apply to the whole of the examination rather than having to be repeated for each question to put the witness. Alternately, the wording of 597(12A) could be changed simply to state that any evidence given by the witness cannot be used for those mentioned purposes and remove the need for the repeated "privilege".

From 27 January 2010, Worrells Melbourne will be located at:

Level 12A
45 William Street
Melbourne Vic 3000

All other contact details will remain the same.

Worrells Melbourne looks forward to your continued support and forming new relationships in the New Year from its new offices.

Worrells holds FREE seminars on insolvency and related topics in February, May, August and November each year. Anyone interested in these topics is welcome to attend.

Details of these free seminars can be found on the Coming Events page on our web site.

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