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 A buzzword is a word or phrase that becomes very popular for a period of time, often outworn, superseded or evolving with time.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…
ASIC’s continuing help for employees
ASIC reported in December 2014 that it had recently exercised its wind up powers to appoint liquidators to nine abandoned companies to assist former employees of these companies, owed in excess of $310,000, to gain access to the Fair Entitlements Guarantee (“FEG”) scheme. In the whole of 2014, ASIC used its new powers obtained in…
The multitasking myth
Want greater productivity and enjoyment while you work? Then stop multitasking, especially if you think you are good at it. While multitasking has been lauded in the workplace and in our personal lives, research continually finds it to be counter-productive. Human multitasking is the apparent handling by an individual of more than one task at…
Procrastination – the art of keeping up with yesterday
Procrastination is the practice of carrying out less urgent tasks in preference to more urgent ones, or doing more pleasurable things in place of less pleasurable ones, and thus putting off impending tasks to a later time, sometimes to the “last minute”. According to psychologist Professor Clarry Lay, a prominent writer on procrastination, procrastination occurs…
Failure? What failure?
Failure is everywhere but most of the time we prefer to ignore that fact and focus on success. In a business park in Ann Arbor, Michigan is the Museum of Failed Products. It looks like a haphazardly organised supermarket, with no shoppers, and shelves crammed with tens of thousands of packages of food and household…
‘Topical’ advertising: fun and free
Struggling for inspiration? Looking for a unique way to connect to customers? Consider topical advertising. It doesn’t require money. It just requires wit. This age-old, and common, practice is where the canny advertiser gains recognition through piggy backing off a popular event or day of the year. It is a form of media promotion designed…