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Bankruptcy in 1 year

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…

To wind-up a whole company or buy-out minority shareholders?

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.…

Appointing a VA, make sure you’re insolvent!!

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,…

Killarnee part 2

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…

Can you set aside a perfected judgments? Just ask the HC

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…

Some weird proposed bankruptcy amendments

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…