#SVVoidables by Matthew Hudson
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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…
I have been writing all week about the new creditor defeating dispositions (CDD) and today am looking at the new ASIC CDD powers (s 588FGAA of the Corporations Act 2001). Sarah’s Garage is trading well, but has fallen behind on its BASs. Rather than pay the ATO, Sarah’s Garage is convinced by dodgy Dan to…
Yesterday I posted about the new creditor defeating dispositions (‘CDD’). Today I am looking at defences. Imagine Co A sells its tyre shop business to Co B and nearly 1 year later enters liquidation. If Co A Liquidator pursued Co B for a CDD, what defences are available: 1. Commerciality of recovering monies from Co…
And here I thought CD’s were going the way of the dodo, insolvency law now has a CDD, or ‘creditor defeating disposition’, as a weapon to combat illegal phoenixing. The law came into effect on 18 February 2020, but ONLY applies to dispositions entered on or after that date. What is a CDD? See s…
If a related party (Co B) pays a text debt on behalf of Co A, and both companies enter into liquidation, which liquidator has priority in pursuing the ATO? The Co A liquidator may pursue the ATO for a third party unfair preference claim, per s588FA of the Corporations Act (assuming the requirements are met).…
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…
Ever wondered how far back Liquidators can look to recover transactions from creditors, directors, government departments or other stakeholders? See below for the answer: If you want to find out more about the types of transactions that can be clawed-back, check out the SV Voidables website!! #svvoidables #directors #insolvency
Travis Mitchell, Barrister at the Victorian Bar
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