Insolvency Archives - Page 2 of 3

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 Construction Insolvency Security of Payments

1 December, 2023

Using DOCAS To Preserve SOPA Claims In Administrations?

Commercial Context Construction companies are often thinly capitalised and do not hold significant real property or other assets. Often their most significant (and sometimes their only) assets are unpaid progress claims arising from construction work undertaken prior to entering into external administration. Progress claims however can be difficult to recover.…

Victoria Caldwell

Commercial Insolvency

6 November, 2023

The PJC’s Corporate Insolvency Report

On 12 July 2023, the Parliamentary Joint Committee on Corporations and Financial Services (PJC) released a comprehensive report on corporate insolvency in Australia. This report made 28 recommendations focused on addressing various issues in the current Australian corporate insolvency space and raised some issues in the personal insolvency sector. The…

Mark Lucchitti

Commercial Insolvency

13 October, 2023

Can statutory demands and set aside applications be served by email?

Bioaction Pty Ltd v Ogborne, in the matter of Bioaction Pty Ltd FCA 436 Statutory demands and applications to set aside a statutory demand may be served by email, however this manner of service is fraught with danger. The requirements for effective service are more complicated and the onus for…

Vincent Young

Insolvency

22 September, 2023

Recovery of judgment debts – Garnishee and Writs

If you have obtained a judgment in your favour and the judgment debtor has failed to pay the judgment amount to you, what are your options? This article looks at two ways you can enforcement a judgment: a garnishee order and a writ. Garnishee order A garnishee order imposes an…

Vincent Young

Commercial Insolvency

15 August, 2023

Unfair Preference Claims – High Court confirms Peak Indebtedness Rule no longer applies

As more companies circle the drain in an increasingly uncertain economic environment, it is timely to review recent developments in unfair preference claims brought by liquidators against creditors. In the recent decision of Bryant & Ors v Badenoch Integrated Logging Pty Ltd HCA 2 (Gunns), the High Court confirmed the…

Vincent Young

Commercial Insolvency

4 April, 2023

Voluntary Winding Up or Deregistration?

Once a company has stopped trading, directors can wind up its affairs through either a members’ voluntary winding up or a deregistration. This article explains each process as well as their benefits and drawbacks. Members' voluntary winding up Overview of the process Voluntary winding ups commence when the shareholders of…

Victoria Caldwell

Commercial Insolvency

2 December, 2022

Director Penalty Regime

Any moratoria in place since COVID-19 is now at an end. The Australian Tax Office (ATO) has reverted back to recovering outstanding tax liabilities. If you are a director of a company, it is important that you are aware that the ATO can, in particular circumstances, recover unpaid company tax…

Victoria Caldwell

Commercial Construction Insolvency

26 May, 2022

SOPA & statutory demands

There has been some confusion about whether debts which arise under Building and Construction Industry Security of Payment Act 1999 (NSW) (the SOPA) can be enforced using a statutory demand. In Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd NSWCA 60 (Grandview v Budget), the NSW Court of Appeal…

Victoria Caldwell

Commercial Insolvency

25 March, 2020

Temporary amendments to Australian insolvency laws due to coronavirus effective today

The Coronavirus Economic Response Package Omnibus Act 2020 (Cth) (Act) has come into force. The Act, among other things, makes temporary amendments to the Australian insolvency and corporations laws in light of the economic impacts of the coronavirus. Why have the amendments been made? The Act provides temporary relief for financially…

Victoria Caldwell

Insolvency

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