Public Commentary – #SVVoidables by Matthew Hudson

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January 16, 2020DOCA's, Public Commentary

Should 444GA share transfers be treated like a standard takeover?

ASIC have just now released for public consultation its proposed new policy on how it will deal with share transfers under a Deed of Company Arrangement (check out the following (https://svpartners.com.au/faq/faq-corporate-insolvency/) or click here and here for more info about DOCA’s). Section 444GA share transfers are relatively rare, with only about 11 in the last…

November 7, 2019Expert reports, Insolvency, Public Commentary

Liquidators preparing their own insolvency reports

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…

October 30, 2019Insolvency, Priority entitlements, Public Commentary, Trustee companies

Allsop CJ speech on insolvent trading trusts (my summary)

I just finished reading a speech delivered by Allsop CJ (Federal Court) regarding insolvent trading trusts. For any insolvency nerds out there (like me), it’s well worth the read! My takeaway points: 1. We are over thinking insolvent trusts. The Corporations Act applies to trading trusts – get over it! **This one might be me reading…

October 30, 2019Phoenixing, Public Commentary

ASIC funding down the gurgler

The ASIC FY2019 annual report was released the other week, and unfortunately it is slim reading for Liquidators looking to ASIC to fund claims against dodgy directors/advisors. By their own admission, YOY comparisons show that the litigation fund set up by ASIC has decreased c$600k since FY2018: Remember, this funding is designed to help liquidators…

September 25, 2019ADR, Public Commentary

Sequential trial model rubbished in Victoria

Victorian Court of Appeal has just slammed the use of the ‘’sequential trial model’ (STM) in a bitter family dispute involving breaches of trust and fiduciary duties. Hoh v Ying Mui Pty Ltd [2019] VSCA 203 The STM was proposed by the trial Judge due to what he described as the extraordinary breadth of issues in dispute and…

August 29, 2019Public Commentary, Voidable Transactions

Breaking news: are unfair preference mothership proceedings dead?

Justice Jackson from the WA Federal Court had just poured ice cold water on mothership proceedings for unfair preference claims. Despite many cases backing mothership proceedings (including SVP’s very own Bias Boating case in the NSW Supreme Court), Jackson J, in effect, says that if the plaintiff Liquidators do not take steps to validate the…

July 29, 2019Insolvency, Public Commentary, Trustee companies

Cold water poured on amending ipso facto clauses from trust deeds pre-appointment

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…