Trading trusts - complete guide

The Complete Guide to Trading Trusts

Estimated reading time: 33 minutes

A trading trust is a trust over goodwill and business assets with the trustee being the legal person responsible to creditors. A trading trust is usually a discretionary trust whose trustee is a company, that is used to trade for the benefit of the beneficiaries. As with a non-trading trust, a trading trust separates legal ownership of assets from beneficial ownership and control. The controllers of the business are the owners and their family who exercise a controlling mind through their appointment as directors of the trustee company.

Insolvency Revolution for SMEs

Insolvency Revolution for SMEs: Australia’s new ‘debtor in possession’ restructuring procedure

Estimated reading time: 9 minutes

The Government is using its currently massive political capital to push through a revolution in SME insolvency law in Australia. Their aim is to make the insolvency process less draconian for small businesses and, in the long term, encourage a more entrepreneurial culture. The changes foreshadow streamlined and genuine debt forgiveness outside of voluntary administration.

Cryptocurrency Fraud

The Complete Guide to Cryptocurrency Fraud

Estimated reading time: 40 minutes

In recent years, there has been a real ‘gold rush’ for cryptocurrency. And while cryptocurrency needs to be ‘mined’, just like the real stuff, it is much easier to transport and, potentially, keep secure.

Pre Insolvency Advisers

Pre-Insolvency Advisers

Estimated reading time: 50 minutes

Pre-insolvency advisers are professionals who help business owners to conduct a root cause analysis to understand why their business is failing and then help them to develop a turnaround strategy (i.e. what to do next) or if this is not possible, plan an orderly winding up.

phoenix activity accounting

The Complete Guide to Illegal Phoenix Activity

Estimated reading time: 42 minutes

Illegal phoenix activity — the ‘re-birth’ of a business in new corporate feathers to avoid its obligations — has been a major concern of regulators in Australia for the last 25 years. In this ultimate guide we explain everything you ever wanted (and didn’t want) to know about phoenix activity in Australia.

Offshore tax havens image

Offshore tax havens

Estimated reading time: 29 minutes

Offshore tax havens are the jurisdictions of choice for building corporate structures to protect assets from creditors and hide the identity of ultimate beneficiaries.
This article should be of interest to any professional advisor interested in understanding the nuts and bolts of setting up an offshore corporate structure.

Voluntary administration

The Complete Guide to Voluntary Administration

Estimated reading time: 40 minutes

Voluntary administration is a process where a registered insolvency professional temporarily takes control of a business which is insolvent, or in financial difficulty. This professional, the ‘voluntary administrator’, takes away control from the directors, for a period of time, in order to assess the finances and determine the future of the business.

How to prepare for a voluntary liquidation

How to prepare for a voluntary liquidation (for SMEs)

Estimated reading time: 10 minutes

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…

Minimise the fallout from a liquidation of your company

How to minimise the fallout from a liquidation of your company (for SMEs)

Estimated reading time: 8 minutes

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…

How to avoid a voluntary administration of your company (for SMEs)

How to avoid a voluntary administration of your company (for SMEs)

Estimated reading time: 8 minutes

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…

COVID-19 technical update: Commercial tenancy changes for SMEs

COVID-19 technical update: Commercial tenancy changes for SMEs

Estimated reading time: 9 minutes

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…