Articles

The start of the year saw builder Builton Group (Platinum Homes and Aspireon Homes) go into administration (owing about $16 million to 350 unsecured creditors, mainly subcontractors), adding to a growing list of WA residential builders and subcontractors that have recently crumbled. One of Builton’s creditors, Anstey Cabinets, was owed $1 million. The effect on…

The technology disruption in the retail sector that has been underway for several years now has seen some high profile casualties in the fashion sector. The toppling of Payless Shoes and Pumpkin Patch has now been followed by the voluntary administration of Marcs, David Lawrence, Herringbone and Rhodes & Beckett. Those major fashion merchants who…

The weird and wonderful claims the Courts are presented with. On 10 November 2016 the High Court unanimously dismissed Clive Palmer’s challenge to the constitutional validity of Section 596A of the Corporations Act (liquidator’s power to publicly examine and compel the production of documents). Palmer, who once declared himself Australia’s next prime minister, halted a…

Are you a “Smombie”? Or do you suffer from Nomophobia? Maybe it’s time to have a break this Christmas. A smombie is a walking person using a smart or mobile phone, and not paying attention as they walk. Seven out of ten young adults aged up to 24 admit using their mobile phones while walking,…

The two-year transitional period under the PPSA ended on 31 January 2014. This transitional period gave parties a two-year grace period to register interests created prior to the commencement of the PPSA that are considered security interests under the PPSA but which were not registrable under prior law, termed “transitional security interests”. Transitional security interests…

In a recent case the Judge clearly reasoned that an ROT clause will provide a valid defence to a liquidator’s unfair preference claim in relation to a payment that reduces the debt to which the ROT clause relates. In Hussain v CSR Building Products Limited, in the matter of FPJ Group Pty Ltd (In Liquidation)…

Should we all be looking for marginal gains? The concept of marginal gains has been widely adopted in sports to improve performance. The principle is that small incremental improvements in any process amount to a significant improvement when they are all added together. The concept came to prominence in 2012 in the world of cycling….

ASIC continues its focus on advisors offering to assist financially distressed companies, especially where that advice facilitates illegal phoenix activity. ASIC has recently commenced writing to directors of companies subject to a winding up application to warn them about untrustworthy advisors. Certain advisors use public information, like ASIC’s Published Notices Website, to identify directors of…

Following the recent publication of ACCC’s Scam Watch data for 2015, which showed that reported losses doubled in 2015, ASIC has told consumers and investors to wise up. ASIC’s deputy chairman Peter Kell said the regulator is warning people to be more wary of fraudsters. Mr Kell said “Overseas-based scammers in particular commonly target consumers…

AFSA has recently developed a formal process to receive and investigate “tip-offs”, which will be handled by the Regulation and Enforcement team within AFSA. A “tip-off” is a piece of information, whether or not given discreetly or confidentially, that is important in AFSA’s role in administering the personal insolvency system and the operation of the…

People love to predict the future; people are not very good at predicting the future. A prediction is a statement about an uncertain event. Outside the context of science, the term is usually used to refer to an informed guess or opinion, often, but not always, based on experience or knowledge. Scientific hypothesis and prediction…

With purportedly 32% of households financially stressed, the growing market for debt management firms is significant. Following an in-depth investigation, on 21 January 2016 ASIC released a research report, Paying to get out of debt or clear your record: the promise of debt management firms (REP 465). Debt management firms can generally be categorised into…