Archive for the 'Bankruptcy & Insolvency' Category

2 March 2016

What effect does external administration have on legal proceedings?

Under the Corporations Act 2001 (the Act) there are several provisions which have the effect of preventing an entity from continuing or commencing legal proceedings against a company in external administration. Voluntary Administration Section 440D of the Act states that: During the administration of a company, a proceeding in a court against the company or […]

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19 September 2014

Increased disclosure obligations for liquidators under the ARITA Code

Changes to the Privacy Act and the decision in the Federal Court of Australia case of Australian Securities and Investments Commission v Franklin (liquidator), in the matter of Walton Constructions Pty Ltd [2014] FCAFC 85 (‘Walton appeal decision’) prompted the addition of section 6.6.1 to the Australian Restructuring Insolvency and Turnaround Association (ARITA) Code of […]

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12 August 2014

Are trust assets safe if a corporate trustee is liquidated?

The answer is no. In the recent Federal Court of Australia decision of Kitay, in the matter of South West Kitchens (WA) Pty Ltd [2014] FCA 670 (“the decision of Kitay”) the Federal Court held that a liquidator of a corporate trustee could sell the trust assets without first obtaining a court order. In the […]

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5 December 2013

Somebody owes me money and will not pay me – What do I do?

If you are owed money there are various measures that you can take to recover it. These measures depend on whether or not an individual or company owes you the money. If an individual owes you money the best initial step to take is to issue a letter of demand to that individual. The letter of […]

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19 September 2013

How can you be made bankrupt?

Bankruptcy relates to individuals only. Individuals generally become bankrupt in one of two ways. The individual either declares bankrupt voluntarily or is forced into bankruptcy by a creditor (the person who is owed money by the bankrupt). How do I become bankrupt voluntarily? An individual with a provable debt, such as a taxation debt, electricity and […]

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27 September 2011

Insolvent Trading and Directors Personal Liability for it

I have had many clients in this current economic climate approach me, who are concerned about whether their company is trading insolvent, and their personal liability that may arise from this. What is Insolvent Trading? Broadly speaking, insolvent trading occurs when a company cannot pay its debts as and when they fall due. Directors of […]

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28 March 2011

Insolvent Trading

Many businesses are currently facing financial pressure, either directly or indirectly because of the credit crunch. This can lead to concerns about solvency. Directors, or persons who could be deemed to be directors, can be held personal liable for debts of the Company where: the Company incurs a debt; and the Company is insolvent at […]

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