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Q. Pooling of assets and liabilities?
In 2004 the Corporations and Markets Advisory Committee proposed that assets and liabilities of companies be aggregated and creditors paid from a common pool which is commonly referred to as ‘pooling of assets'.
In 2007 ‘pooling' was introduced for cases where all companies in a group are insolvent. Stakeholders highlighted that this option received significant attention in 2007-08 and therefore, there is a significant body of work that exists examining the pooling of assets and liabilities. It was also argued by many stakeholders that such an option has significant implications for corporations law.
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