With insolvencies surging by 43% in the quarter ending 29 September 2024, many small and medium businesses — and their owners — are feeling the financial strain. For directors and their families, the impact can be especially severe if personal guarantees are enforced and the family home is used as [...]
During 2022, the ATO issued almost 18,500 director penalty notices (DPNs) to directors of Australian companies. A further 52,000 directors received warnings, and the ATO has started referring certain debtors to credit reporting agencies. This is indicative of a significant uptick in collections activity following a period of relative leniency [...]
If you pay a debt to the wrong account because of a fraud you could well be required to pay twice. In the past three years losses due to business email compromise have risen from $3.8 million[1] to $132 million[2]. Typically such frauds take the form of a “man in the [...]
Protecting your hard-earned assets from legal liabilities and claims makes a lot of sense and involves forward thinking and planning. Ideally, you would like to ensure that your wealth-creation structures are separated from "risky business". Any entity conducting business is at risk because of the nature of its pursuits. It is [...]
Administrators often find themselves in a position where they need or desire further time to convene a second creditors’ meeting. The recent Federal Court case of Farnsworth v About Life Pty Limited (Administrator Appointed), in the matter of About Life Pty Limited (Administrator Appointed) [2019] FCA 11, provides a useful [...]
In the recent decision of Sheahan, in the matter of BCI Finances Pty Limited (in liq) [2018] FCA 1499, Justice White of the Federal Court approved the entry by liquidators into an agreement compromising the debts owed to companies to which they were appointed. The case serves as a useful [...]
Pointon Partners regularly appears for creditors at winding up applications in the Supreme Court of Victoria. Creditors owed debts by companies subject to winding up proceedings commenced by others may appear at such hearings as ‘supporting creditors’. Commonly, a company attempting to stave off being wound up, will source funds [...]
The Government says the amendments apply only to contracts entered into after commencement. But what does the Bill say? The proposed Ipso Facto amendments[1] impose a stay on the enforcement of contractual rights arising by reason of: (a) an application or entry into a compromise or arrangement under Part 5.1; [...]
Often, bankruptcy proceedings will be based on a judgement debt. In such proceedings, the Bankruptcy Court must satisfy itself that the debt being claimed by the petitioning creditor is truly owing, and often the petitioning creditor will rely on the judgement debt as proof of this. The High Court of [...]
Australia’s insolvent trading laws are set to be drastically altered by the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 (Bill), which was passed by the senate on 11 September 2017. The imposition of personal liability on company directors for company debts in insolvent trading circumstances has historically [...]
