Category: Insolvency & Reconstruction

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ATO cracking down on director penalties

30 May 2022

The Australian Tax Office (ATO) is ramping up its collection of overdue tax payments, including by serving Director Penalty Notices (DPNs) which were largely held in abeyance during the COVID-19 pandemic.

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Corporations Act

Suspension of insolvency laws in response to COVID-19

25 March 2020

On Monday 23 March 2020, the federal parliament passed the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) implementing a range of urgent measures announced by the government on Sunday 22 March 2020.

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Judge gives lesson

Judge gives lesson to insolvency practitioners on determining proofs of debt

05 September 2019

Key Points:

  • In a recent decision of the Supreme Court of Victoria, the Court held that an appeal under the new Insolvency Practice Rules against an insolvency practitioner’s determination on a proof of debt at a meeting of creditors is a hearing de novo (ie a fresh hearing) without any need for the appellant to identify error by the original decision-maker.
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Contracting with liquidators and administrators: how to do so effectively and the need to take care

11 March 2019

Key points:

  • When contracting with administrators or liquidators, counterparties need to be careful to ensure such contracts will give them enforceable rights.
  • An administrator can enter into almost any contract and is personally liable for numerous categories of debts they may incur.
  • A liquidator has only limited powers to enter into contracts on behalf of a company, and generally has no personal liability under such contacts.
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Can a liquidator obtain or enforce a judgment under the Security of Payments Act?

11 March 2019

Key points:

  • A liquidator is unable to apply for a judgment under the Building and Construction Industry Security of Payment Act 2002 (Vic) (SOPA).
  • Where judgment under the SOPA was obtained by the contractor before it went into liquidation, and the principal asserts an offsetting claim, the Court will stay enforcement of the judgment pending a taking of accounts pursuant to section 553C of the Corporations Act.
  • Ultimately, a liquidator will only be able to enforce payment of an amount actually shown to be owed under the construction contract, after a final reconciliation has occurred.
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When can a liquidator sell a cause of action?

11 March 2019

Key points:

  • Liquidators have the power to sell causes of action belonging to the company, or conferred on the liquidator by the Corporations Act 2001 (Cth) (Act).
  • Selling instead of litigating causes of action can be a safer, surer and quicker path for a liquidator to realise value for creditors.
  • However, there are certain important limitations on a liquidator’s power to sell causes of action.
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Safe Harbour

‘Safe Harbour’ and ‘ipso facto’ insolvency reforms – what do they mean and what will they do?

14 December 2017

Important insolvency reforms recently passed into law as a result of the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (Cth) (TLA Act).

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Lloyd's List

Litigation and insolvency skills boost for Rigby Cooke Lawyers

12 December 2017

Rigby Cooke Lawyers has appointed Senior Associate Katerina Poulakis to the team, boosting its litigation and dispute resolution credentials.

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