Insolvency Law Reform Act 2016
The Insolvency Law Reform Act 2016 received Royal Assent on 29 February 2016 and comprises reforms to amend and streamline the Bankruptcy Act 1966, the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001. A key aim of the Act is to restore confidence in the insolvency profession by raising the…
Corporate insolvencies
ASIC’s quarterly insolvency statistics for the September 2015 quarter show a national increase for all external administrations of 8% compared to the June 2015 quarter, and a 20% increase on the September 2014 quarter. Interestingly, the detail shows that court liquidations (up 54%) and voluntary administrations (up 12%) rose nationally compared to the June 2015…
Being remarkable: building your own brand
Stuck in survival mode rather than thriving? Want to grow your business, or just be noticed? You may feel you are noticed but is that enough? Maybe you want to be remarkable, something or someone that is remarked upon or talked about. Being remarkable takes verve, confidence, application and resilience. It involves building your brand,…
Innovative insolvency law changes
As part of the national innovation and science agenda, the Australian Government has proposed reforms to insolvency laws designed to encourage innovation and entrepreneurial behaviour, while still protecting creditors. The Government’s National Innovation Statement, which outlines the proposed reforms, was issued on 7 December 2015, the same day that the Productivity Commission’s Inquiry report into…
Receivers: Who reaps the profits?
A recent decision of the Queensland Supreme Court definitively confirmed that when a receiver purchases inventory in a trade-on of a business, and subsequently makes a profit on the sale of that inventory, the profit is available to a secured creditor who has a floating charge (known since the introduction of the PPSA as a…
Driven to distraction?
How often are you distracted at work? No matter who you are or where you work, it is likely that you will be distracted at work innumerable times, every day. Regaining concentration after a distraction takes time, so distractions reduce productivity and effectiveness, and increase stress. Distractions can erode your ability to focus and may…
Set-off affirmations
A recurring issue in liquidations is whether a person (usually, but not always, a director) can off-set a claim by a liquidator for insolvent trading, or an unfair preference, against monies owed to a person from the insolvent company. Section 553C of the Corporations Act 2001 (Cth) contains the set-off provisions.The leading decision on the…
Relentless buzz
Buzzwords. Love them or hate them but they are omnipresent and running amok. A buzzword is a word or phrase that becomes very popular for a period of time, often outworn, superseded or evolving with time. Buzzwords often originate in jargon, acronyms or neologisms. No area of our lives is immune to buzzwords (general conversation,…
A fresh start for bankrupts – really?
In the last issue of Sheridans’ View we reported the case of De Santis v Aravanis [2014] FCA 1243, appealed to the Federal Court of Australia, in which it was held that property acquired by a bankrupt with after-acquired income does not vest in the trustee. This decision appears to have been overturned in a…
Beware – Directors’ liability to compensate employees
In the very recent case of Roberts v A1 Scaffold Group Pty Ltd & Ors [2015] FCCA 422, in a default judgement the Federal Court used Sections 550 and 545(2)(b) of the Fair Work Act to hold directors personally liable to pay compensation for Award underpayments to an employee. In this case the directors, both…
The Broken Windows Theory
Do you have any broken windows in your business? The Broken Windows Theory is a criminological theory of the norm-setting and signalling effect of urban disorder and vandalism on additional crime and anti-social behaviour. The theory originated in 1982 from criminologists George Kelling and James Wilson, who suggested that minor disorder, like vandalism, acted as…
After-Acquired Property of the Bankrupt – Update
In the recent case of De Santis v Aravanis [2014] FCA 1243, which was an appeal to the Federal Court of Australia heard in May 2013 with judgement not given until 21 November 2014, Justice Farrell held that property acquired by a bankrupt with after–acquired income does not vest in the trustee. The concept of…