Into the twilight zone: Corporate insolvency amendments, and the disappearing act of section 511 (et al)
Seeking directions from the Court in the period 1 March to 1 September 2017 – what are liquidators and administrators to do?
Category: Insolvency Law
Insolvency Law Update – Re Amerind Pty Ltd (receivers and managers apptd) (in liq) [2017] VSC 127
Justice Robson has delivered his decision on an application by receivers and managers for directions as to, among other things, their obligations to pay preferential debts under the Corporations Act from the surplus generated by their trading-on of a business and other recoveries by their appointing bank.
Fixing insolvency practitioners’ remuneration: a uniform national approach
The New South Wales Court of Appeal has overturned one of a series of decisions by Brereton J in which, it held, undue prominence had been given to considerations of proportionality and value of the services provided by liquidators in determining their remuneration claims.
Forge and the $44m fail
A recent decision of the New South Wales Court of Appeal serves as a timely reminder of the costly consequences of failing to register a PPSR security interest in leased goods.
Missing directors and company registers: winding up a company as trustee of a shareholder
Winding up a company when you are the trustee in bankruptcy of the sole director and shareholder can be more complicated than you think.
Federal Court clarifies the scope of stays under the Model Law on Cross-Border Insolvency
In Suk v Hanjin Shipping Co Ltd [2016] FCA 1404, the Federal Court (a) provided guidance on how courts are to determine what stay arises upon recognition of foreign main proceedings under the Cross-Border Insolvency Act 2008; and (2) demonstrated that such recognition can cause maritime lien actions to be stayed.
Insolvency practitioners’ remuneration: NSW Court of Appeal weighs into the controversy
A five-member bench of the New South Wales Court of Appeal recently heard argument in an appeal from a decision by Justice Brereton dealing with a liquidator’s remuneration claim.
Insolvency Set-Off ousts Contractors’ Right to Summary Judgment in the Construction Industry
It has been held that automatic set off under s 553C of the Corporations Act 2001 (Cth) precludes companies in liquidation from taking advantage of the summary progress payment regime under the Building and Construction Industry Security of Payment Act 2002 (Vic).
Court approval of settlements in liquidations
The Supreme Court has confirmed that declarations can be made approving settlement payments and the mere fact that a liquidator has acted on incorrect advice will not preclude a settlement payment being regarded as an expense “properly incurred” for the purposes of s 556(1)(a) of the Corporations Act.
The company will repay the loan when it can afford to! How certain is that?
The Supreme Court of Victoria has dismissed an application by a company to set aside a statutory demand which sought repayment of a loan which was to be repaid “as soon as practicable”. The Court held that the term as to repayment was void for uncertainty, and that the loan was accordingly immediately due and payable from its inception.
Setting aside a Statutory Demand? Look out, you could be struck out if serving interstate
When serving an application to set aside a statutory demand interstate, the strict modes prescribed by SEPA trump service under the Corporations Act (or any mode of informal effective service which might otherwise suffice). Practitioners forgetting this may face a rather abrupt conclusion to proceedings.
Bond’s Bell group litigation never dies: High Court strikes down WA laws as constitutionally invalid
Alan Bond passed away last year, but the legal battles over the 1990 collapse of his Bell Group companies may yet continue. The High Court has declared state legislation, which was designed to end the long-running litigation by short-circuiting certain aspects of the Corporations Act 2001 (C’th), constitutionally invalid.
Pursuing a lawyer in VCAT for non-compliance with a notice issued under s 530B of the Corporations Act
A liquidator has successfully relied on legal profession disciplinary legislation to challenge a lawyer’s non-compliance with a s 530B notice. The result is that the dispute was heard and determined in VCAT, as opposed to the Supreme Court of Victoria which traditionally has jurisdiction over s 530B notices
Insurers on the hook: High Court holds that insurers of insolvent companies can be joined to proceedings commenced by third parties against those companies
The High Court of Australia has held unanimously[1] that a person who commences proceedings against an insolvent company or a bankrupt individual can join that defendant’s insurer to the proceedings and seek a declaration that the insurer is liable to indemnify the defendant.