Insolvency

Insolvency

Statutory Demands: What to do about post-judgment interest

A Creditor’s Statutory Demand (CSD) is a formal document which if in the proper form, and is served correctly, requires the company served to either: pay the amount demanded (which must be over $2,000) within 21 calendar days– otherwise the company will be deemed insolvent and could eventually be wound up and a liquidator appointed; or

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Do I need an accountant or a lawyer when my company is in financial trouble?

Well it depends. Insolvency usually gives rise to both legal and financial issues. External accountant The company’s external accountant is often the first person a director will approach for advice if insolvency looms on the horizon. Sometimes the accountant can provide sufficient advice to assist in the survival of the company.  In my experience, when

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Debtor prison – alive and well in 2016

In modern times, it is rather hard to believe that a prison term could be imposed on a person who loses a civil case and fails to pay part of the other party’s pre-litigation costs.  That possibility exists however under section 91 of the Australian Securities and Investments Commission Act 2001. That section would allow

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Tips for creditors lodging proofs of debt

In my experience, many creditors or parties asserting a claim or debt in a liquidation, voluntary administration or when voting for, or proving in a Deed of Company Arrangement (DOCA) fail to invest the time and care needed to lodge a valid proof of debt or particulars of their claim. This issue seems to be

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Insurance Policy Disclosure in Insolvency Administrations

We have recently been involved in two voluntary administrations which lead to Deeds of Company Arrangement (DOCA) where a creditor sought a copy of the company’s insurance policy which they knew was in existence and which was relevant to their claim. The creditor knew of the policy’s existence due to the terms of their contract

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Are you contracting with a corporate trustee?

It is not uncommon for SME companies to be trustees of trading trusts. This article looks at some of the issues involved with dealing with a corporate trustee.

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‘Tis the season to be wary…

At this time of year, many of our clients are starting to wind down in the lead up to the holiday period – or perhaps more realistically, madly trying to get everything done before the annual Xmas/New Year shutdown. Past experience has shown us that there is a tendency for some opportunists out there to

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Traps for Directors – Part 2

This article looks at potential traps facing company directors.

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Looming insolvency – some traps for directors

While being precise as to the exact insolvency time/date is important for directors, what is more important is that they need to recognise a likely insolvency early enough to take steps to try to overcome it.

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Painaway – a complex dispute with a happy ending

James Hamilton: My client was appointed by the Supreme Court of NSW as receiver to a company Painaway, which marketed and sold “Painaway” branded products. My client, the Receiver, was appointed as a result of a shareholder dispute, which eventually resulted in one director locking the others out of the company’s warehouse. The Receiver’s initial concern was that Painaway’s rights to make, market and sell the Painaway product were unclear.

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