A collection of news and insights about our firm and developments in the law, finance and insolvency industries
In September 2017 Australia’s insolvent trading laws were significantly watered down by the introduction of a new safe harbour for directors. Ben Sewell of Sewell & Kettle Lawyers explains the significance of the new law. Discussion Includes The new safe harbour provisions The prohibition on insolvent trading Implementing a plan The hurdles to obtaining the […]
There are two circumstances where a liquidator can be voluntarily appointed by a company. Both of these appointments are made by special resolution of a company’s members and can be distinguished by the appointment to a solvent or insolvent company. A voluntary liquidator appointed to a solvent company is made when a company resolves for […]
The writer’s view is that 95% of voluntary administrations fail to meet the stated objective of the regime, being saving goodwill value of insolvent businesses, saving jobs and repaying a percentage of creditor claims (in double digits). Unfortunately, there is no empirical evidence to prove or disprove this proposition. The key question that all directors […]
What is an asset protection trust? Any form of trust that provides for assets to be held on a discretionary basis under the control of a trustee for the benefit of the beneficiaries. Where are the tax havens? These offshore jurisdictions prefer to call themselves Offshore Financial Centers (OFCs) and they may be broken up […]
A primer for directors The benefit of a good insolvency lawyer is true professionalism. Thoughtful advice from an insolvency lawyer should save directors a lot of financial pain and wasted effort if their company faces insolvency. Discussions are privileged and lawyers owe a duty of fidelity to the client that can’t be broken by a […]
Director Penalty Notice is a tax enforcement instrument issued by the Australian Taxation Office. It is issued to directors of companies and if it is not complied with tthey become personally liable for the company’s unpaid tax debts. A “lockdown” director penalty notice is an instrument that can only be discharged if the director actually […]
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