In previous articles we mentioned that as part of the Federal Government’s crackdown on phoenix operators, bills were introduced to provide for automatic personal liability of directors in certain circumstances and seek to extend the personal liability to unpaid superannuation guarantee charge. The Bills have now passed at both Houses of Parliament and Royal Assent …
Business Debrief
Business Debrief is a publication undertaken by our experienced Insolvency & Business Recovery team with important articles and updates in the Insolvency industry. If you would like to be notified when we add new Business Debrief publications to the site, subscribe for email alerts or, alternatively, you can subscribe to our RSS Feed.
BACKGROUND In our May 2011 edition of Business Debrief, we posted an article in relation to proposed changes to the Director Penalty Notice (“DPN”) provisions. The changes were wide reaching and were designed to deter fraudulent phoenix activity by company directors. In essence the proposed changes were as follows: the director penalty regime to be …
In difficult times, it is very common for struggling companies to request entering into payment arrangements with their creditors in order to sustain cash flow. Creditors accepting these payment arrangements must be careful of the implications in accepting the part payments if the payee company is placed in Liquidation within the six months of receiving …
The recent fall in the Australian Dollar has been welcomed by manufacturers after a challenging year for the industry however manufacturers will still need to endure tough conditions. Partner Domenic Calabretta and Senior Manager Duke Wolfgramm report. The Aussie dollar recently fell to a 10 month low against the US dollar recently closing at US97 …
According to Dun and Bradstreet, Australia recorded a 12 per cent increase in business failures in the June 2011 quarter. Business conditions are not expected to improve in the short term and companies will need to continue navigating through difficult waters. We have selected 3 management tips that we feel will provide a significant impact …
In a recent case Owners of Strata Plan 5290 v CGS & Co Pty Ltd [2011] NSWCA 168, the NSW Court of Appeal considered whether s 477(2)(c) of the Corporations Act 2001 (Cth) (the “Act”) empowers liquidators to assign a right of a company to a third party in circumstances where that right would otherwise …
The Federal Treasurer, the Hon Wayne Swan MP, has released the 2011-12 budget which if all goes to plan should hopefully result to surplus in the 2012/13 financial year. However, we will need to endure over $70 billion of deficits in the current and next financial year. There is no doubt the government will have …
It is established practice that once a secured lender has been paid out in full and/or that all of the assets of the borrower have been realised that the receiver and manager should retire as soon as practicable. However, a recent case has shown that there may be circumstances which require a receiver and manager …
Since the Global Financial Crisis, it has been very common for the Australian Taxation Office in assisting companies manage their tax obligations by entering into negotiated payment arrangements. This has allowed Directors of struggling companies some breathing space by providing sustainable cash flow management in tough times. However Directors need to beware that entering into …
