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Summary Creditor-defeating dispositions occur when a company transfers property for less than its reasonable market value. A liquidator now has the power to claw back creditor-defeating dispositions by suing both the director and any professional advisor. ASIC has been granted new powers to intervene to recover property received in a voidable creditor-defeating disposition on its […]

It is illegal for a director of a company to allow an insolvent company to continue to trade, while having reasonable grounds for suspecting insolvency. The consequences can be serious.  In a New Zealand case last year, Dame Jenny Shipley, former Prime Minister of New Zealand, was ordered to pay $6 million for allowing the […]

Summary In this article, we look at the steps that directors of small to medium-sized enterprises (‘SMEs’) need to consider, before initiating a voluntary liquidation (otherwise known as a ‘voluntary winding-up’). We look at: the purpose of voluntary liquidation; whether appointing a voluntary liquidator is ever a good idea; getting the books in order prior […]

Introduction If you build in an earthquake-prone area, you need to shore up the foundations with soil compaction, gravel or concrete. But sometimes, no matter what you do, liquefaction will occur. The same principle applies to company liquidations. Sometimes, no matter what a director has done to try and avoid a liquidation, it will loom […]

Summary Voluntary administration rarely results in a good outcome for the business –or its creditors. The end result is usually the winding up of the business as a going concern, and ‘next-to-nada’ for the creditors. We have already discussed How to prepare for a voluntary administration, and here we set out the steps you need […]

28 April 2020 Summary In response to anticipated temporary insolvency of small-to-medium sized enterprises, the Retail and Other Commercial Leases (COVID-19) Regulation 2020 was introduced in NSW on 24 April 2020 The regulations are set to be in place for six months commencing on 24 April 2020 It covers leases governed by the Retail Leases […]