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Insolvency

Battle of Priorities: Liquidator’s remuneration vs Employee claims in insolvency

Section 556 of the Corporations Act 2001 (Cth) legislates the priority of certain payments in the winding up of a company.  Section 561 of the Act provides that employee entitlement claims in a winding up have priority over circulating security inter...

Insolvency

Deed of Company Arrangement terminated due to “materially misleading” administrators’ report

In the recent decision of Sino Group International Ltd v Toddler Kindy Gymbaroo Pty Ltd [2023] FCAFC 110, the Court concluded that an administrators' report issued to creditors was misleading in nature and terminated the deed of company arrangement (...

Insolvency

The Order of the Illegal Phoenix: The rebirth of a struggling business

Like the immortal phoenix rising from the ashes, a new company, often just established, might arise from the winding-up of a failing company. When that new company's officers and directors are essentially the same of the failing company, and the new ...

Published by Foez Dewan
18 October, 2023
Insolvency

Court finds Corporations Act requirements abrogates penalty privilege under an examination summons

Section 596A of the Corporations Act (Act) provides for the summoning of a person (officers and former officers) for examination about a company's affairs when the company is, in summary terms, under administration, being restructured or wound up.

Published by Chiara Rawlins
28 September, 2023
Insolvency

Statutory Demands

A Statutory Demand is a tool under the Corporations Act 2001 (Cth) (the "Corporations Act") that requires a debtor company to pay a debt within 21 days. 

Published by Foez Dewan
27 September, 2023
Insolvency

High Court says set off not available as a defence to unfair preference claim

The recent decision in Metal Manufactures Pty Limited v Morton [2023] HCA 1 has confirmed that set-off cannot be used as a defence to a liquidator’s unfair preference claim under s. 553C of the Corporations Act 2001 (Cth) (the "Corp...

Insolvency

High Court confirms liquidators may not rely on the peak indebtedness rule

It is well established that the liquidator of a company may apply to the courts to set aside and recover payments made to creditors of that company to increase the estate's general pool of assets available to all creditors under S. 588FE of the C...

Insolvency

‘Skippers, Skimmers and Readers’: Google successful against ACCC once again

In June 2016, Google LLC (Google) introduced a notification system where consumers were instructed that Google had added some "optional features". If consumers clicked "I agree", Google would be allowed to combine their personal information obtained ...

Published by Foez Dewan
3 July, 2023
Insolvency

Accessorial Liability under the Corporations Act 2001 (Cth)

Meaning of accessorial liability Individuals or corporations may be liable for contraventions of the Corporations Act 2001 (Cth) ('the Act') on the basis of their primary liability or accessorial liability. Primary...

Published by Chiara Rawlins
7 February, 2023
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