Commercial Archives - Vincent Young

Commercial Insolvency

13 June, 2024

Disclaimer of property by a liquidator

Section 568 of the Corporations Act 2001 (Cth) (Act) allows a liquidator to disclaim certain property owned by a company to which the liquidator is appointed. The disclaimer has the effect of extinguishing the company’s interest in the property but does not otherwise affect any interests attaching to the property.…

Victoria Caldwell

Commercial Insolvency Property

12 June, 2024

PPSA Series: Beneficial Purchasers Without Notice

Foreword This is Part One in Vincent Young’s new PPSA Series. If you supply or purchase goods on credit or are involved in hiring goods, it is critical that you understand the PPSA regime. These kinds of transactions are very commonly utilised in the construction industry. If you don’t fully…

Victoria Caldwell

Commercial Construction Development

16 May, 2024

Be Aware Of Discharging A Guarantee

In the construction industry, it is common for a parent company/guarantor of a contractor to provide a guarantee to the principal. The guarantee usually includes the assumption of liability for any obligation owed by the contractor to the principal should the contractor fail to meet its obligations. This article deals…

Victoria Caldwell

Commercial Insolvency

14 May, 2024

When does a company “incur” a tax debt for the purposes of a claim under section 588G?

Section 588G of the Corporations Act 2001 (Cth) imposes a positive duty on company directors to stop a company they control from incurring a debt once it has become insolvent. Insolvent trading claims often constitute one of the easiest recoveries available in liquidation. Complexities however can arise when considering when…

Victoria Caldwell

Commercial Insolvency Property

9 April, 2024

Duties of a liquidator when selling company property

Section 420A of the Corporations Act 2001 (Cth) (Act) obliges a receiver exercising a power of sale to take all reasonable care to sell the property for market value or the best price reasonably obtainable. This is typically a heavy duty. Liquidators are not subject to section 420A of the…

Victoria Caldwell

Commercial Construction Insolvency Security of Payments

5 April, 2024

Enforcing SOPA judgments: An overview of Garnishee Orders and Statutory Demands

Congratulations! You have just obtained an adjudication certificate. What comes next if the respondent refuses to pay the adjudicated amount? Knowing how to enforce SOPA debts is essential for construction industry participants who want to exercise their right to receive progress payment. Two potentially powerful options available to claimants are…

Victoria Caldwell

Commercial

28 March, 2024

The Question: Will The Court Order A Separate Question?

Typically, the standard approach in litigation is to resolve all issues together in a single hearing. However, there are exceptions acknowledged by the Uniform Civil Procedure Rules 2005 (NSW) (UCPR) where a specific issue may be decided as a separate question before addressing the remaining disputes in the legal proceedings.…

Victoria Caldwell

Commercial Insolvency Property

15 March, 2024

Taking Security from Related Entities of a Borrower – Unreasonable Director-Related Transactions

Case note - Cooper as Liquidator of Runtong Investment and Development Pty Ltd (In Liq) v CEG Direct Securities Pty Ltd FCA 6 The recent case of Cooper as Liquidator of Runtong Investment and Development Pty Ltd (In Liq) v CEG Direct Securities Pty Ltd FCA 6 (Cooper), shed light…

Victoria Caldwell

Commercial Insolvency

8 March, 2024

Personal Liability of Administrators

The personal liability arising under Division 9 of Part 5.3 A of the Corporations Act 2001 (Cth) (Act) often provides one of the greatest risks facing administrators on accepting an appointment. These risks can limit restructuring options available through a voluntary administration as an administrator is unlikely to want to…

Victoria Caldwell

Commercial Insolvency

29 February, 2024

Substituting Creditors – Why You Should Join A Winding Up Petition

What you need to know Where a company that owes you money is subject to a winding up application brought by an unrelated third party, you should always seek to join the proceedings as a supporting creditor. If you are a supporting creditor, you have a right to apply to…

Victoria Caldwell

Commercial

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