Shareholder and Creditor Protection Indices - Australia 1970-2010

Abstract

The shareholder and creditor protection indices for Australia are part of a larger international study examining the relationship between a country’s legal origins and the extent and character of business regulation, including labour law, and shareholder and creditor protection. The indices measure changes between 1970 and 2010 in the protection of shareholders and creditors in Australia. The index of shareholder rights consists of 60 items in total. It has been divided into two sub-indices – the first measures shareholder protection against various forms of expropriation by boards of directors and management and the second measures the protection that shareholders have against other shareholders. The creditor protection index consists of 44 items and is divided into three sub-indices. The first sub-index relating to creditor protection measures the extent to which rules restrict or deter debtor companies from entering into transactions that might harm creditors’ interests while the company is a going concern. The second index measures creditor contract rules. The third index measures the extent to which creditor rights are protected in insolvency, and considers both liquidation and rehabilitation.