#SVVoidables by Matthew Hudson
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Bankruptcy period just confirmed to be reduced to 1 year. The Senate Legal and Constitutional Affairs Committee have just moments ago handed down their report recommending that the bankruptcy period be reduced to 1 year from 3 years. In what will be discussed at length (and disagreed with) by many in the insolvency profession, the only…
This is what was asked of the QLD Court of Appeal (“QCA”), with judgement delivered on Friday. It was not in dispute that the majority and minority shareholders were in a ‘quasi-partnership’ and that the relationship had “irretrievably broken down” due to the majority’s conduct – ie oppression, unfair prejudice and discrimination against the minority.…
If you appoint a Voluntary Administrator (“VA”) to your company, it pays to first carefully form an opinion as to its insolvency (or future insolvency); otherwise you are in for an expensive day in court. The Corporations Act requires directors, when resolving to appoint a VA, to form an opinion that the company is insolvent,…
The Full Federal Court has just handed down its decision in the much anticipated Killarnee decision on trust assets and liquidations. The Court has held (in summary): (a) the Trust Assets at the time of the winding-up of Killarnee are not assets of the Company and therefore not capable of being sold by the Liquidator, pursuant to s477…
The High Court has today handed down its decision on whether to set aside a ‘perfected judgment’ in the Players Pty Ltd Liquidation. The Court held that the power to set aside a ‘perfected judgment’: (a) requires actual fraud (although there are some discrete other reasons not in issue); but (b) does not require the innocent party to exercise…
Should we allow undischarged Bankrupts the right to accumulate savings or assets from their income? What about changing s139ZH of the Bankruptcy Act (“BA”) to force the Registered Trustee to account to the bankrupt for any overpaid income contributions? This is as opposed to the current method where overpayment are only set-off against future income contribution…
What amount is too low for an unfair preference claim to be taken to court by a Liquidator? $10,000? $20,000? $30,000? More? Obviously the lower the amount of the claim, the higher the proportion of costs will be. In a case handed down yesterday, a Liquidator in WA was successful in the Federal Court of…
Sunny’s Travel Agency found itself in trouble when a hotel chain in Sydney collapsed due to insolvency. Sunny’s had received credit card payments from clients totalling $100,000 that were then used to pay for many holiday stays at this particular hotel chain. Sunny’s had no idea that the hotel chain was about to enter Liquidation…
James issued an invalid statutory demand on a customer, following a recent successful judgment in the NSW District Court. He claims $100k for unpaid debts, plus interest until the date of judgment of $10k, and also a further $5k for post-judgment interest. James reckons he can claim all of this because his terms and conditions say that his company may…
Breaking news #LincEnergy: QLD Court of Appeal has just ruled the State’s environmental rules do not trump a Liquidators power of disclaimer under the Corporations Act (“disclaimer rights”). The Court ruled: – although QLD’s environmental laws (eg Environmental Protection Orders (“EPO”)) are ‘potentially’ inconsistent** with disclaimer rights, the Court found the EPO provisions do not fall…
Travis Mitchell, Barrister at the Victorian Bar
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