High Court decision validates Holding Deeds of Company Arrangement
In Australia of Mighty River International Limited v Hughes, Mighty River International Limited v Mineral Resources Limited [2018] HCA 38, the High Court considered whether a Deed of Company Arrangement (DOCA) contravened Part 5.3A of the Corporations Act 2001 (Cth) (the Act). In particular, the High Court considered whether what is commonly described as a […]
ReadmoreUnfair preferences and insolvent transactions – ‘knowledge’ of insolvency and the good faith defence
In Stimpson v Commissioner of State Revenue [2018] QDC 140, the District Court of Queensland considers the statutory defence under the Corporations Act 2001 (the Act) to preference or insolvent transaction proceedings. Underlying the decision is the impact increasingly automated processes may have on well-established legal principles regarding evidence of ‘knowledge’ and ‘belief’. This contributed […]
ReadmoreWA Court of Appeal Overturns First Instance Decision in Hamersley v Forge
To set-off or not to set-off? That was the question recently answered in the affirmative by the West Australian Court of Appeal in Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liq) (Receivers and Managers appointed) [2018] WASCA 163. The Court of Appeal held that the judge at first instance was wrong […]
ReadmoreIs a new postal rule coming?
On 12 September 2018, the Commonwealth Senate passed the Civil Law and Justice Legislation Amendment Bill 2018 (Cth). This Bill proposes to amend section 160 of the Evidence Act 1995 (Cth). This section contains the general rule by which a postal article sent by prepaid post is presumed to be received by the recipient on […]
ReadmoreRelation back day changes
Section 588FE and 588FF of the Corporations Act 2001 (Cth) (Act) operate to make certain transactions by a company voidable within a prescribed period prior to the company entering liquidation/voluntary administration. The relation back day is the date by which the prescribed period begins whereby transactions entered into by the company may be considered void. […]
ReadmoreIpso facto reforms – what exceptions apply?
From 1 July 2018, new provisions introduced into the Corporations Act 2001 (Cth) (CA 2001) by the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (Cth), impose a stay on the enforcement of ipso facto clauses against a company that becomes subject to certain prescribed insolvency events. Importantly, the changes only apply to […]
ReadmoreOff duty and off the hook: Directors’ fiduciary duties after resignation
The recent Victorian Supreme Court decision of Advanced Fuels Technology Pty Ltd v Blythe & Ors provides useful guidance regarding the Court’s approach to the survival of a company director’s fiduciary duties after the director’s resignation and whether the Court will restrain his or her ability to compete with the company. The facts Mr Blythe […]
ReadmoreRights of a mortgagee dispossessed of land
If you are a mortgagee, or acting for one, you may encounter a situation where you have obtained judgment against a mortgagor for possession of land and, after executing a warrant of possession to gain vacant possession, the mortgagor and/or their associates have unlawfully re-entered the property. In a recent Supreme Court of Victoria case[1] […]
ReadmoreAmerind – insolvent corporate trustees and the Corporations Act 2001 priority regime – still a grey area
The Victorian Court of Appeal in Amerind[1] considered whether the right of indemnity from trust assets held by an insolvent trustee company is ‘property of the company’. If so, the Court considered whether the statutory scheme of priority contained in the Corporations Act 2001 (Cth) (Corporations Act) applies to the distribution of the relevant property. […]
ReadmoreVoluntary Administrators – entitlement to an equitable or statutory lien over funds held on trust
A recent case in the Supreme Court of Victoria of In the matter of Specialist Australian Security Group Pty Ltd (In Liquidation) (ACN 094 807 173)[1] considered voluntary administrators’ claim to a statutory and equitable lien in respect of remuneration and expenses incurred by them. The facts Valdii Investments Pty Ltd (Valdii) and Abcit […]
ReadmoreFreezing and ancillary orders – key factors the Court considers
Following our July 2018 refresher article ‘Freezing orders – a refresher’, the recent decision of Parbery & Ors v QNI Metals Pty Ltd & Ors [2018] QSC 107 is a helpful reminder of the factors the Court will take into account and the threshold an applicant must meet when deciding whether to grant freezing and […]
ReadmoreWhen a trading trust goes bust: the aftermath of the Killarnee decision
Many modern businesses are carried on through a “trading trust”, with a private company serving as trustee. However, while this type of arrangement is not uncommon, there is still a great deal of uncertainty about correct protocol when a corporate trustee becomes insolvent. Questions arise such as: What happens with the corporate trustee is wound […]
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