International cooperation

The CA:

• • requires courts of the Commonwealth, of the states and territories, of certain external territories and of “prescribed countries” (notably the USA, UK and NZ) to aid and be auxiliary to each other in winding up matters;
• • permits the same action with respect to other foreign courts (although this is now mandated by the Model Law dealt with below); and
• • allows local courts to act on letters of request from foreign courts and to issue such letters to foreign courts.

In addition, Australia is now a party to the Model Law on Cross-Border Insolvency prepared by the United Nations Commission on International Trade Law (UNCITRAL) by reason of the Cross-Border Insolvency Act 2008 (Cth). This has precedence over the CA (subject to an overriding public interest test) and basically provides local recognition to the rights of foreign administrators and creditors, using the international concept of a “centre of main interest” of a company.

See International cooperation.