All publications relating to ‘Insolvency’
Failing to Register a PPSR Security Interest on Time – Legal Risks and Options
IntroductionTimely registration of security interests under the Personal Property Securities Act 2009 (Cth) (PPSA) is essential for secured creditors to protect their rights. Failure to register within the prescribed timeframes can result in the creditor losing priority to unsecured creditors in the event of insolvency.While creditors who have failed to register…
UPDATE | Changes to statutory demands from 1 January 2021
Marc Baddams and Sean Greenwood provide an update following on from the recent article Changes to statutory demands from 1 January 2021 posted on 23 December 2021.Update The Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) (the Act), commenced on 1 January 2021. The Act provides, among other things, that for a three month…
Meritas — An Introduction to Temporary Changes Affecting Businesses in Australia and New Zealand
Looking for business and legal guidance regarding COVID-19 updates and programs in Australia & New Zealand? This document has coverage across the region with member firms who are here to assist. Please visit any of the COVID-19 resource materials for more comprehensive updates. View here…
Insolvency Update | Statutory Demands, Bankruptcy and Insolvent Trading | 26 March 2020
With COVID-19, the Coronavirus Economic Response Package Omnibus Bill 2020 (the Bill) has some sweeping changes to statutory demands, bankruptcy and insolvent trading including: Statutory Demands: the minimum debt for a statutory demand will be $20,000 (instead of $2,000)the time for compliance by a debtor company is now 6 months (instead of 21 days)This will apply…
Til Debt Do Us Part: The effective use and pitfalls of statutory demands
Introduction A creditor who is claiming a debt from a company will often want to employ the quickest and cheapest method of recovery and the risks, costs and length of time associated with commencing court proceedings may not be the most appealing option. Accordingly, many creditors will often consider issuing a company with a statutory…
Right to terminate contracts for insolvency
“Ipso facto” clauses are clauses which allow a party to terminate a contract if the other party suffers an insolvency event. These provisions are enforceable even if the insolvent party has otherwise continued to perform its obligations under the contract. Some important reforms came into force on 1 July 2018 which restrict the operation…
Important news for small business new laws offer protection against unfair contracts
In Brief The landscape for small businesses in Australia is changing. Throughout 2016, those of you looking to the future will no doubt be planning ahead to ensure your business does not miss a beat – or an opportunity! From 2017, small businesses will have the same protection against unfair contract…
Am I liable for misleading information supplied by someone else?
In brief The Australian Consumer Law prohibits misleading or deceptive conduct and false or misleading representations. But can you escape liability if you merely pass on misleading information provided by someone else? The conduit principle Generally, an intermediary that innocently passes on misinformation may not be held liable for misleading or deceptive…
Liquidators — examining pre-examination steps
In Brief Examinations under sections 596A and 596B of the Corporations Act 2001 (Cth) are an important method for liquidators to assess the prospects of success and basis for bringing court proceedings as part of the liquidation. However, given the cost and time involved in conducting an examination, it is often…
Practice note: Approval of provisional liquidator’s remuneration
In Brief In the Matter of CB Constructions (NSW) Pty Ltd [2014] NSWSC 913 is a recent decision of Justice Black which provides a timely reminder of the matters which need to be addressed when seeking court approval for the remuneration of a provisional liquidator under section 473(2) of the Corporations Act 2001 (Cth)…