Ordinarily resident – a matter of fact and degree
A further twist in bankruptcy proceedings In Issue 40 (October 2017) of Sheridans’ View we noted the High Court of Australia’s reported decision in the matter of Ramsay Health Care Australia Pty Ltd v Compton [2017] HCA 28 that the Court still needs to be satisfied that a debt is truly owed by the debtor…
Insolvency – a fluid concept?
Liquidity test or balance sheet test – that is the question? I contend that you should [almost] always start with the balance sheet. For many decades there has been a preponderance of judgments focusing on liquidity rather than net assets when assessing a company’s solvency. And that is not surprising when the legislation itself identifies the ability…
There was no ‘safe harbour’ for Air New Zealand in 2001
It has long been said that airlines only exist for the benefit of the aircraft manufacturers. This suggestion has been supported by an incessant flow of airline failures over the years. I include in that list those airlines that only survive on the basis of their Government shareholders covering their losses. Many years ago I was lucky…
Settlement of all matters – does it matter?
You have just spent six months negotiating a difficult matter and finally agreed to settle. The lawyers draw up the settlement agreement and one of the clauses says that this is a full and final settlement of all matters between the parties. I’m sure all lawyers are taught to use this clause in Commercial Law 101. That would explain…
ILRA – Just a massive job creation scheme?
As a senior member of a busy specialist insolvency firm, I am a regular user of the insolvency legislation. Last year new legislation was implemented in the guise of insolvency law reform. Apparently it represented 10% of all Federal legislation passed that year. There is a lot of it. Last week I had to hunt down the meaning…
Pressure on recalcitrant payers coming in 2018
Two recent significant credit management developments offer the prospect of help and relief for business, especially small business, in the New Year: The Australian Taxation Office (ATO) reporting to registered Credit Reporting Bureaus (CRBs). Speedier payments from Federal Government agencies. Transparency of tax debt measure In its mid 2016-2017 Mid-Year Economic and Fiscal Outlook, the…
Why Boredom isn’t Boring
Seems like we’ll do anything to avoid being bored. We view it as an annoying feeling to be avoided at all costs. Plus some of us feel pressure to always be engaged with something for fear of appearing lazy. And with our ever-growing to-do lists and so much technology at our finger tips to amuse…
Reduction of bankrupts’ period of penal servitude to one year
Finally on 19 October 2017 the Government introduced into Federal Parliament the long promised Bill to reduce the default period of bankruptcy from three years to one year. Back in December 2015 the Federal Government announced its National Innovation Statement (“NIS”), which outlined proposed reforms to insolvency laws that are designed, amongst other things, to…
New laws to target rogue company directors and their advisors (Director Identification Numbers)
On 12 September 2017 the Hon Kelly O’Dwyer MP (Minister for Revenue and Financial Services) announced that “The Turnbull Government is taking action to crack down on illegal phoenixing activity that costs the economy up to $3.2 billion per year to ensure those involved face tougher penalties.” Illegal phoenixing is the stripping and transfer of…
Hanging on the Telephone
(Blondie) (When a liquidator’s seemingly small omission can have serious consequences) In the 2016 case of Asden Developments Pty Ltd (in liq) v Dinoris (No 3) [2016] FCA 788 (a six day trial) the Federal Court found that a liquidator had in effect breached his duty as an officer under Section 180 of the Corporations…
Feelings, nothing more than feelings….
(Morris Albert/Louis Gasté) I’m an accountant. An insolvency and forensic accountant. Through my training and work experience I’ve been told and taught to critically analyse, measure, consider, compare etc. To more objectively assess a position, consider options and develop strategies. To make a “proper” assessment in order to correctly advise and make good decisions. However,…
Life in the Fast Lane (our need for speed)
What defines our times? One significant factor is the drive for speed or immediacy. For most of us life is a careful balancing act, a finely timetabled life, in which everything works so long as no-one is ill. Weekends often offer little spare time but instead are occupied with shopping, family, household chores and getting…