#SVVoidables by Matthew Hudson
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When applying to set aside a statutory demand, don’t just rely upon the work of the court registry! Today’s case, although arbitrary and kind of unfair, is a stark reminder of how courts apply form over substance when you are trying to save your company from being wound-up by the court. Company A was issued a statutory…
Does this work? Amending the trust deed before a liquidator or administrator is appointed to a company in external administration (“EA“) so that the appointee can sell trust assets. Not according to 2 new Federal Court cases delivered last Friday (see the bottom of the page for the links). The Court prefers that in all…
A Directors Penalty Notice (DPN) issued on a c$19m tax liability ‘guestimate’ by the #ATO has landed a related party director in hot water. Although the amount was later reduced to c$4m (once the ATO issued an amended Estimate Notice), the Court found ([2019] FCA 1086) that the timing to comply with the DPN was…
Another case on trusts and insolvent corporate trustees was handed down recently, this time by Derrington J in the Federal Court. Much longer decision than the Amerind, High Court, one recently! Main things to take away: — sham unit trust created when members of a community put money together for the purpose of purchasing properties —…
In today’s case this is precisely what happened, when AXL received a statutory demand (SD) from a creditor. Remember, when you receive a SD, you have 21 days to serve on the creditor an application to set it aside. Alternatively, you could pay the debt, or appoint formally an insolvency practitioner of your own choosing.…
Justice Wigney (Federal Court) has held on Friday that it is at least reasonably arguable that the Commissioner of Taxation (ie #ATO) owed the applicant taxpayer a duty of care at common law. What does this mean? It allows the taxpayer to press ahead with its case that the ATO was allegedly negligent when it…
Who? Why? How? The building blocks of a successful bankruptcy notice need to inform the debtor (ie the person who owes you money) of these three questions. Without doing so, how might the debtor have a chance to pay you before you make them bankrupt? Today’s case looks at a situation where the bankruptcy notice…
Does it pay to ask for forgiveness rather than permission? The curious case of (an unknown) bankrupt director appointing an insolvency practitioner (“IP“) to his insolvent company, and the Court validating the appointment. This is a bit fact heavy, so bare with me – imagine the following: Accountant realises a client company is in financial trouble and approaches…
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