“Wrap up all of your director loans into a fixed and floating charge deed, register that security on the PPSR and when a liquidator gets appointed 6+ months later take all of the company’s assets for yourself.”
This was the advice dodgy Dan gave to Tommy.
Katie, Tommy’s wife, had other ideas.
“I was reading the other day that a liquidator can attack security arrangements, as a voidable transaction,” she said.
“If the company gives you this ‘security’ won’t that mean that you are being given a preference and an unreasonable advantage over other creditors, causing them a significant detriment?”
Tommy disagrees with Katie and gets his lawyer to prepare the charging deed to cover all of his past loans to the company and duly registered his ‘AllPAAP security’ on the PPSR.
When the ATO finally winds up his company in liquidation 18 months later, Tommy takes the two big unencumbered bulldozers from his company’s premises.
Whose side are you on?
Katie or dodgy Dan and Tommy?
If Tommy had provided the company with a loan after entering into the ‘security’, would this change your answer?
