#SVVoidables by Matthew Hudson
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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…
The QLD Supreme Court ruled this month that liquidators (and by extension Voluntary Administrators) of corporate trustees cannot be paid remuneration from trust property for general insolvency work (in this instance). Let me explain … * LMIM was corporate trustee of a number of scheme trusts, but never operated in its own capacity * VA’s…
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…
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 —…
Breaking news: the Federal Court has just now held that the Killarnee decision is to be applied in circumstances where a Deed Administrator is seeking to disperse pooled trust assets to a stepped hierarchy of stakeholders. Manpak Holdings is the case name. This means that a Voluntary Administrator appointed to a trustee company that is…
Just when you thought trust company liquidation law was finally settled by two superior court cases this year, Justice Brereton has another bite of the cherry. The liquidator applied to Justice Brereton seeking declarations that the trust assets: (1) were to be treated, in effect, as company assets via the right of indemnity as corporate…
Credit managers, if your customer trades its business under a trust structure, please be sure to register your PMSI* based on your customer’s ABN, not ACN. If your customer fills out its credit application with you and only supplies its business name and/or ABN, please be sure to run (at least) a free ABN look-up** to make…
Travis Mitchell, Barrister at the Victorian Bar
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