Statutory Demands – #SVVoidables by Matthew Hudson

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March 24, 2020Bankruptcy, Constitutional law, COVID-19, Fiduciary Duties, Insolvency, Public Commentary, Statutory Demands, Workouts

$20k court wind-ups and 6 months to respond

Mix of my LinkedIn Articles from Sunday 22/3/2020 and Monday 23/3/2020 … BREAKING 22/3/2020: The government has just announced (in its stimulus package) an increase to the threshold at which a creditor can take action to initiate insolvency from $2,000 to $20,000 and giving companies six months instead of 21 days to respond. It probably…

March 10, 2020Insolvency, Public Commentary, Registered Office, Statutory Demands, Voidable Transactions

Insolvency and the Biosecurity Act

In January 2020 the COVID-19 coronavirus was declared a Listed Human Disease, meaning the Biosecurity Act 2015 (Cth) can now be used by Government to its full effect. It means (amongst other things) a person can be directed or forced to self-isolate for an indefinite period of time. In the context of the insolvency profession…

February 17, 2020Expert reports, Insolvency, Statutory Demands, Voidable Transactions

A thorn in the side of an ATO defence to unfair preferences

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…

November 22, 2019Statutory Demands

s459R does not apply to appeals

A quick FYI, if you need to appeal a decision from the court that set aside a statutory demand (and the wind-up application) YOU DO NOT need to apply to extend the period of the statutory demand under s459R of the Corporations Act 2001 (Cth). The reasoning of today’s case was that the decision to…

October 25, 2019Registered Office, Statutory Demands

Automatic mail forwarding and registered offices – #teamTLM

Do you know what the registered office of your company is? If it is your accountant or lawyers address, what do you do if they change address or no longer wish to act for you? Mark is in semi-retirement mode, after a longer career in the law. He’s decided to close down his city practice,…

July 30, 2019Statutory Demands

Form over substance when setting aside statutory demands

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…

July 15, 2019Statutory Demands

Applying to set aside a statutory demand in the family court – what could possibly go wrong?

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.…