#SVVoidables by Matthew Hudson
This blog is designed to capture the large volume of my LinkedIn posts. To follow me on LinkedIn search #SVVoidables.
🚀AusSpaceLaw⚖️: Recently, a Chinese Long March 5B space rocket uncontrollably crashed into Earth, allegedly leaving debris (up to 12 metres in length) strewn across parts of Africa. The economic cost is currently being worked out.I have a particular interest in the intersection between space laws and insolvency laws, so upon the reading of the above…
A lot of people tend to focus on the liquidity ratio, when determining whether a company is solvent or not. It’s psychologically very weighty. Liquidity ratio = current assets / current liabilities But this can cloud judgment. Imagine you need to prove the company’s solvency because it is facing a court ordered wind-up, and the…
Due to a very recent case, the ATO now (I believe) has a big problem in defending unfair preference claims from Liquidators. Why’s that? The recent Full Federal Court case of ‘Solar Shop‘ found that despite Solar Shop being under a formal payment arrangement with the ATO and despite not being in breach of its…
Breaching books and records laws may have just got a whole lot easier to prove, according to a recent Federal Court case (Re Adelaide Brighton Cement Limited (No 4) [2019] FCA 1846). Insolvency people regularly talk about directors of insolvent entities not properly keeping records or those records being wrong. Although it is a civil…
Can a Liquidator prepare their own insolvency report for court proceedings? Yes (in theory) … but I think there are two hurdles you need to overcome before you can say for certain. One of which, I am saving for an article I am writing for the ARITA journal. Spoiler: some professional body members may be excluded from preparing their…
If you’re briefing experts in court proceedings, or are in the business of giving expert evidence, two really important cases were handed down in the past month. Collectively the cases run for about 1,400 paragraphs, so I haven’t been able to finish a cash summary for my followers. As I run a busy practice, it may take…
“Our business is not insolvent,” remarked Scotty, “we have plenty of room in the limit of our debtor factoring facility and we made a small profit last year.” Let me know what you think about this in the comments, because I have heard it 3 times just this week. Do I think this is right? If working…
An interesting aspect to my job is that when I do expert reports, I technically don’t have clients. My overriding obligation is to the Courts and the rule of law. So you tend to have to wait for feedback from Courts. Today, I received such feedback in a judgment from the QLD District Court in relation…
1. Preventing a winding-up application (most common type) 2. Fighting a voidable transaction claim that the Liquidator says occurred when the company was insolvent (very common) 3. Trying to stave off bank recovery or foreclosure action 4. Proving to the board of directors that a Voluntary Administration or #safeharbour proposal is the only option 5.…
It’s official, #QuickBooks is a ‘kept’ ‘book’ for the purposes of the Corporations Act, thanks to a WA Supreme Court decision handed down last Wednesday. 7 barristers and a day of hearings, lead Justice Tottle to this groundbreaking conclusion. The issue was in relation to whether or not a liquidator could rely upon QuickBooks in pursuing various voidable…
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