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Consenting Administrator cannot revoke it later

BREAKING: Federal Court has just held that if an Administrator consents in writing to a proceeding, they cannot later revoke, suspend or withdraw the consent. Link to the case – https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2020/2020fca0572 The issue at stake was whether an Aboriginal Corporation, under Administration, could rely upon the stay of proceedings powers under s440D of the Corporations…

Two big events: ISX and Virgin

Two big events are happening today: 1) #virginaustralia first meeting of creditors at about 11 AM (AEST) 2) iSignthis Ltd (ASX: ISX) vs ASX judgment in the Federal Court will be handed down at about 10 AM (AEST) – I have been following this matter for some time now, and principally relates to the ASX’s…

Appointing a VA, make sure you’re insolvent!!

If you appoint a Voluntary Administrator (“VA”) to your company, it pays to first carefully form an opinion as to its insolvency (or future insolvency); otherwise you are in for an expensive day in court. The Corporations Act requires directors, when resolving to appoint a VA, to form an opinion that the company is insolvent,…

VA’s appointment wrong, but we will still pay you

At the end of last year, the Federal Court handed down a decision that, respectfully, I’m feeling conflicted about. On the one hand, of course an Administrator (“VA”) should be paid for their reasonable remuneration. Even if the appointment is invalid due to circumstances outside of the VA’s control. But on the other hand, if the VA is invalid…