Safe Harbour defence to Insolvent Trading

What is the safe harbour defence to insolvent trading? The safe harbour provisions provide directors with an exception from insolvent trading liability where they are developing courses of action which are reasonably likely to lead to a better outcome for the company than administration or liquidation. The relevant legislative provision is s588GA Corporations Act 2001…

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Federal police charge RAMS founder with fraud

In a recent media release, the Australian Federal Police (AFP) said that the charges follow a complex 8 year investigation, although it did not identify Mr Kinghorn by name, instead referring to “a 76-year-old Sydney man”. It will be alleged in court that Mr Kinghorn fraudulently concealed his beneficial ownership and control of corporate entities,…

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Company director slammed with maximum ban

  The maximum disqualification of 5 years for operating a company has been handed down to a former director, after he was found to have repeatedly breached director duties. Peter Nicholas Cook, of Sydney, was handed the penalty by the Australian Securities & Investments Commission (ASIC) in relation to his involvement in a total of…

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Books of the Company

What are Books of the Company? The scope of a Liquidator’s power to demand copies of documents under Section 530A of the Corporations Act 2001 We recently assisted a client with a letter of demand received from a liquidator of a building company (in liquidation) (the “First Company”). The First Company had initially entered into…

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