Blog

A collection of news and insights about our firm and developments in the law, finance and insolvency industries

  • Deed and an agreement - what is the difference?

    What is the difference between a deed and an agreement?

    A deed and an agreement are two types of legal instruments that are sometimes used interchangeably. However, in fact, they are two very different species and their incorrect use may have adverse consequences on certain transactions. A deed is an instrument that must be “signed, sealed and delivered”, in writing and gives the strongest indication […]

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  • Winding up application. Applications to wind up a company in insolvency

    Applications to wind up a company in insolvency

    Summary If a company is presumed to be insolvent under section 459C of the Corporations Act 2001 (Cth) (Act) a creditor can apply to the Federal or Supreme Court to wind up the company Applications are made under section 459P of the Act and the Court has the power to wind up a company in […]

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  • Insolvency. What is the legal meaning of insolvency?

    What is the legal meaning of insolvency?

    Insolvency is the term that is used to describe the position of a company when it is unable to pay its debts as they become due and payable It is interpreted by the Courts using what is known as the “cash-flow test” If directors of a company suspect that their company is or may become […]

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  • Statutory demand for payment of debt

    Creditor’s statutory demand for payment of debt

    UPDATED MAY 2020 Summary A statutory demand for payment of debt is an important tool for creditors in getting payment from reluctant debtors and/or pushing for insolvency; There are strict requirements that a statutory demand must meet in order to be enforceable and there are significant risks to getting it wrong. Creditors need to consider […]

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  • Insolvent trading claim

    Insolvent trading claims

    Summary: What is an insolvent trading claim? An insolvent trading claim is an action for breach of a director’s duties. The prohibition against insolvent trading is a duty of all company directors that is set out in section 588G of the Corporations Act. It is a cause of action that liquidators have against company directors […]

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  • Safe harbour from insolvent trading

    Interview and podcast on the safe harbour from insolvent trading

    In September 2017, a new safe harbour from insolvent trading was introduced to help company directors undertake informal restructures during insolvency. It is the only carve-out to the duty of company directors to cease trading when a company is insolvent. The new safe harbour from insolvent trading represents a significant watering down of the insolvent […]

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