#SVVoidables by Matthew Hudson
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BREAKING: payments made by a company previously under a Deed Administration (or DOCA) to the ATO are recoverable as unfair preferences (once in liquidation) and not ‘by, or under the authority’ of the Deed Administrators within the meaning of s 588FE(2B)(d) Corporations Act. From the Federal Court today. These payments relate to post-VA debts owed…
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 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…
Your #VelocityRewards look pretty safe to me! I spent an hour this evening with publicly available FY18/19 financials for the 4 main entities controlling Rewards, and this is what I worked out: 1. the corporate structure I could quickly piece together is summarised on the first page of the PDF. I assume we are each…
This is me spitballing a UK idea, but let me introduce the ‘Entrepreneurs Administration (EA)’ an Australian form of Voluntary Administration that could allow directors to trade their business, purchase stock, run day-to-day operations, etc, despite it being in the hands of a VA. Given #COVID19 impacts on business, we need to think of new…
Do not seek an extension of time of the convening period in a Voluntary Administration until after the first meeting of creditors – that’s the veiled message I got from reading Justice Farrell’s comments in a recent Federal Court case. The case is Clubb, in the matter of DS Opco Pty Ltd (administrators appointed) (receivers…
Big case delivered yesterday in the NSW Court of Appeal (South Head & District Synagogue case). I have been waiting months for this one. The case relates to whether the Voluntary Administrators could terminate the employment of the Chief Rabbi. The Rabbi argued that Orthodox Jewish Law (Hazakah) should be incorporated into Australian Law, meaning…
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,…
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…
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