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Summary Excessive charging by liquidators puts the claims of unsecured creditors at risk; Remuneration must be ‘reasonable’ and take into account a range of factors; Excessive charging can be challenged by creditors, but the best option for creditors is to take care in appointing responsible liquidators and thoroughly examine the proposed costs of a liquidator […]

Summary Formerly, it was a requirement in a Voluntary Members Liquidation (MVL) that, if the directors of the company were not prepared to make a declaration of solvency, a first meeting of the creditors had to be called by the liquidator. At this meeting, the liquidator could be replaced. As a result of changes to […]

Summary Liquidation is the process of winding up a company in an orderly manner. The end result is the distribution of any remaining assets to those owed by the company; Liquidators, the professionals that oversee a liquidation, are appointed by shareholders, creditors or the Court, but company directors have an important say in their appointment; […]

Summary On the 18th of February 2019, the new Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 (Amendment Act) became law. The Amendment Act strengthened penalties for misconduct or duty breach by those who govern, manage and are employed by corporations in Australia. This includes penalties for officers, directors, employees and corporations […]

Summary Liquidation is the legal process that occurs when a company is formally wound up. In most cases (though not all), a company enters liquidation due to insolvency: being unable to pay debts as they fall due and payable. The key impact of liquidation is that, while the process is underway, ‘unsecured creditors’ (those who […]

Ben Sewell of Sewell & Kettle Lawyers contributes to research for a landmark study of Voluntary Administration in Australia – the most significant research project to date Professor Jason Harris of Sydney University Law School is the only academic to seriously tackle an empirical study into Voluntary Administration Ben Sewell is critical of Voluntary Administration […]