Business Turnaround Association
C/ Level 7, 6 Underwood St
SYDNEY 2000
02 9247 7126

The Secretary								       
Parliamentary Joint Committee
 on Corporations and Financial Services
Room SG.64
Parliament House
CANBERRA ACT 2600
31 January 2003

Dear Sir/Madam

As a new Association formed in January 2003 we have not yet been able to meet to have formal discussions about your enquiry.  The Association has been formed by leading professionals who have an interest in and believe that Australia could significantly benefit from an effective Business Turnaround Association.

The Working Group of the Association consists of leading professionals who have an interest and experience in the area of companies getting into financial difficulties. The Working Group believe that if Australia had an effective Turnaround Industry to assist both Insolvent companies and companies in financial difficulties, that the financial losses caused to employees, creditors, government and the community at large would be substantially less than they are now.

The Strategic Objectives of the Business Turnaround Association are:
•	assist in the creation of a certain and consistent environment which is favourable to the development of business turnarounds and reconstructions;
•	create a group or groups of members that will assist businesses to understand the issues involved in business turnarounds;
•	promote a bi-partisan political agenda in which Members may participate and be at the forefront of the development of long-term and consistent public policy for business turnarounds and reconstructions;
•	promote greater public awareness of the benefits associated with business turnarounds and reconstructions; 
•	represent the interests of Members in dealings with Government Ministers, departments and agencies, members of Parliament and with any other persons or organisations deemed appropriate by the Committee

The Specific Initial Objectives of the BTA are:

•	Provide a forum for and coordinate all the supplier and support groups/organisations that are able to make a positive contribution to companies requiring business turnaround skills.

•	Make the availability of these member services known to shareholder groups and directors of companies

•	Put in place systems that can be used by shareholders/directors as information and discussion points regarding companies that need some form of reconstruction

•	Allow shareholders and/or directors access to member groups of the association and for them to conduct their own evaluation of the appropriateness of the association's members.

It is proposed the association would initially comprise the following member groups:
•	Chief executive officers
•	Non executive directors and chairmen
•	Accountants
•	Lawyers
•	Communication and financial public relations firms
•	Financiers/investors
•	Shareholder groups

Time and the Christmas period has not permitted the Business Turnaround Association to formally consider all the issues that are relevant in considering comments and recommendations on the current Insolvency Laws in Australia.

The current committee of the Association is aware that one of the significant working group members Pacific Capital Corporation Ltd has forwarded a more detailed submission to you. Without the Association formally endorsing all these Pacific Capital recommendations it believes that the issues raised by Pacific Capital are ones that should be seriously considered in an evaluation of Australia’s Insolvency Laws.

Yours faithfully

Peter Thomson
Committee Member
Business Turnaround Association