A recent judgment of O’Callaghan J confirms that rental expenses incurred during the statutory ‘no liability’ period following an administrator’s appointment may be afforded priority in a subsequent winding up, despite the fact that the administrators are not personally liable for those expenses.
Author: James Claridge
The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) received Royal Assent on 17 February 2020. A number of important measures targeted at ‘phoenix activity’ have now taken effect, including the duty imposed on company officers to prevent ‘creditor-defeating dispositions’.
In Botsman v Bolitho & Ors  VSCA 278, the Court of Appeal agreed that a settlement sum of $64 million was fair and reasonable but overturned the trial judge’s decision to approve distributions in respect of legal costs and pursuant to a common fund order.
The Court of Appeal dismissed an appeal by ASIC in proceedings brought against Peter Geary, a former officer of the Australian Wheat Board. The proceedings related to payments made by AWB to the Iraqi government in contravention of UN Resolutions.