You’ve been served! Federal Court of Australia affirms recent amendments to modernise the Corporations Act
In Bioaction Pty Ltd -v- Ogborne, in the matter of Bioaction Pty Ltd [2022] FCA 436 (Bioaction), her Honour Justice Cheeseman considered whether an application to set aside a statutory demand was served within the 21-day period as provided for in Section 459G of the Corporations Act 2001 (Cth) (the Act). In deciding this matter, […]
ReadmorePower to sell – Federal Court exercises discretion to allow company to realise trust assets
In Brooks, in the matter of Tease Hair & Spa Pty Ltd (in liquidation),[1] the Federal Court made orders in favour of the Liquidator, pursuant to section 90-15 of Schedule 2 to the Corporations Act 2001 (Cth) (Insolvency Practice Schedule (Corporations)) and section 47 of the Trustee Act 1989 (Tas) allowing the Liquidator to realise […]
ReadmoreShell company leads to successful unconscionable conduct claim for ‘wilful blindness’
The High Court has resolved to hold lenders responsible where they are wilfully blind to the position of a guarantor or take advantage of an individual’s lack of business acumen or financial resources. This extended to the use of independent legal and financial advice certificates (certificates) in relation to asset-based lending. The decision serves as […]
ReadmoreProposed amendments to the Betting and Racing Regulation and the definition of an inducement
The Betting and Racing Regulation 2012 (NSW) (Betting and Racing Regulation) and Totalizator Regulation 2012 (NSW) will be repealed on 1 September 2022. In anticipation of the expiration of these regulations, Liquor and Gaming NSW (L&GNSW) have released the following draft regulations for consideration and feedback: Draft Betting and Racing Regulation 2022; and Draft Totalizator […]
ReadmoreConsidering Conflicts: Queensland Supreme Court rejects application to restrain liquidators’ choice of representation
This matter involved the former director and former accountant of CGS Constructions (QLD) Pty Ltd filing proceedings seeking an injunction to restrain the Liquidators from engaging Cornwalls Lawyers to act on the basis that: Cornwalls also acted for a substantial creditor, Union Share Pty Ltd; and the Liquidators, by engaging Cornwalls, had manifested a tendency […]
ReadmoreA cold winter for the A Team – Court freezes funds and assets
Between 31 May 2022 and 7 June 2022, ASIC obtained three freezing orders against the Mr Hopkins and his companies. In doing so, the Federal Court of Australia ordered: 1) the Defendants’ assets be frozen; 2) the disclosure of existing assets to the Court; 3) the appointment of a receiver over digital assets; and 4) […]
ReadmoreAnti-phoenixing laws demystified: The Victorian Supreme Court considers the creditor-defeating disposition regime
In Re Intellicomms Pty Ltd (in liq) [2022] VSC 228, it was determined that a sale agreement was a creditor-defeating disposition within the meaning of section 588FDB of the Corporations Act 2001 (Cth) (Act) and voidable pursuant to section 588FE(6B) of the Act. The Court held that, the consideration payable by the transaction was less […]
ReadmoreAn easy win? Obtaining summary judgment in the absence of the Defendant
In the matter of Squirrel Limited (In Liquidation), the Court considered an application for summary judgement against a director for insolvent trading. In doing so, the Court considered the principles underpinning a director’s duty to prevent insolvent trading and the compensation payable as a result. Background The first plaintiffs, Mr Brent Kijurina and Mr Richard […]
ReadmorePushing ‘START’ on button battery safety standards – Combating a danger lurking in the household
The new button/coin battery safety standards become mandatory on 22 June 2022. So as a manufacturer, importer, wholesaler or retailer of products that contain button batteries, what do you need to know? Purpose Button batteries are used in a broad range of products around our homes. These include watches, handheld computers and remote controls, key […]
ReadmoreFailure to launch: Liquidators fail to establish abuse of process in public examination summonses
Public examination can be a useful tool for parties in a liquidation to obtain information about matters relating to a company’s affairs. In the matter of Jewel of India Holdings Pty Ltd ACN 141 963 813 (in liquidation) [2022] NSWSC 356, the Court considered whether summonses for public examination, that were issued by the former […]
ReadmoreOptimising voluntary administration: In the matter of Merchant Overseas Logistics Pty Ltd [2022] VSC 154 opens the door for expediated creditor returns through secondary voluntary administration.
The Supreme Court of Victoria has considered the viability of allowing a company to enter a second voluntary administration after going into liquidation following a failed DOCA. The Court considered that rather than maintain a state of liquidation, the secondary voluntary administration process would better serve the best interests of creditors and optimise the efficiency […]
ReadmoreTrying to pull a fast one: An attempt to use family law orders to defeat creditors
Family law processes cannot be used to defraud creditors. In Re ZH International Pty Ltd (in liq),[1] the Supreme Court of New South Wales held that transfers of property from a company to the directors and shareholders of that company as part of family law proceedings were voidable transactions under section 588FF of the Corporations […]
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